Advance Management Accounting: Integrated Reporting Essay

This essay delves into the Integrated Reporting (IR) framework, examining its relevance and application in the contemporary corporate world, with a particular focus on the Lendlease Group. It addresses the issues and challenges associated with adopting the IR method for annual reports, incl...Read More

ADVANCE MANAGEMENT
ACCOUNTING

• Integrated reporting and strategic management of any financial as well
as non-financial organization present the annual report in a simple way
to the stakeholders so that the report is understandable
(Aicd.companydirectors.com.au 2020).
• Integrated reporting adopted by many organizations in Australia also
includes the strategic management method alongside.
• Strategic management is the method of continually being updated with
the current need of the organization and customizing the operations
accordingly, which involves planning then monitoring and followed by
analyzing the goal with the proposed strategies (Ansoff et al. 2018).
Introduction

1. The issues and challenges that are faced by Lendlease
Group while they apply the Integrated Reporting method
for their annual report (Assets.kpmg 2020).
• Cost of adoption
• Knowledge of information
• Time is taken and the materiality
• The traditional way of reporting
• Increment in the workload
Discussion

2. Different issues tackled during the implementation of
integrated reporting by Lendlease Group (Cheng et al.
2014)
• The approach of multiple capitals
• The process of integrity with connectivity
• Maintaining the legitimate interests and the needs of the stakeholder’s
of the organization
• Value creation and materiality
• Conciseness
• Business model

• Other guiding principles
• Content element
• Other quality issues (Busco et al. 2013)
• Enablers, barriers and incentives

3. The issues which are related to the implementation of
Strategic Management faced by Lendlease Group
1. Ineffective training (Frynas and Mellahi 2015).
2. Weak strategy
3. Miscommunication
4. Limited resource
5. Maintaining the strategy thoroughly

4. The issues regarding strategic management by Lendlease
should be avoided
• The strategies are aligned and reviewed against the relevance of the
new strategy (Australian Financial Review 2020).
• The budget to apply the strategy is analyzed along with the
performance measurement. So that the updated strategy is used
thoroughly and the impact is huge upon the employees of the Group.
• It is essential to involve incentives in every new strategy so that the
interest of the employees remains unchanged or rather, it increases
(Bouten and Hoozée 2015).
• The structure of the strategy also changes accordingly so that the
adoption of the strategy is easy for the employees.

• Issues of Lendlease regarding integrated reporting and strategic management
are quite similar to the other organizations who also have adopted the
frameworks.
• The issues regarding the integrated reporting can be solved by following some
simple steps like obeying the guidelines of the integrated reporting
thoroughly.
Conclusion

• However, the stakeholders of the organizations who have not adopted
the integrated reporting method have not reported any complaints,
which ultimately decreases the development and demand of the
reporting style.
• The issues regarding strategic management have also detected from the
Lendlease Group annual report which shows that even after considering
all the facts thoroughly, some problems cannot be avoided completely as
it related with the fluctuating market demand which cannot be
controlled.

Bibliography:
Aicd.companydirectors.com.au 2020. [online] Aicd.companydirectors.com.au. Available at:
https://aicd.companydirectors.com.au/membership/company-director-magazine/2017-back-editions/october/
integrated-reporting-the-whole-picture [Accessed 16 Jan. 2020].
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting strategic management.
Springer.
Assets.kpmg 2020. [online] Assets.kpmg. Available at:
https://assets.kpmg/content/dam/kpmg/au/pdf/2016/corporate-reporting-asx-200-evolution-integration.pdf
[Accessed 16 Jan. 2020].
Australian Financial Review 2020. Integrated reporting: Telling the whole story has become the trend for business.
[online] Australian Financial Review. Available at: https://www.afr.com/companies/telling-the-whole-story-the-
trend-for-business-20180225-h0wlzm [Accessed 16 Jan. 2020].
Bouten, L. and Hoozée, S., 2015. Challenges in sustainability and integrated reporting. Issues in Accounting
Education Teaching Notes, 30(4), pp.83-93.
Busco, C., Frigo, M.L., Riccaboni, A. and Quattrone, P., 2013. Integrated reporting. Concepts and Cases that.
Cheng, M., Green, W., Conradie, P., Konishi, N. and Romi, A., 2014. The international integrated reporting
framework: key issues and future research opportunities. Journal of International Financial Management &
Accounting, 25(1), pp.90-119.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.

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