University Finance Report: Integrated Reporting Framework Analysis

This report provides an analysis of the integrated reporting framework, focusing on its impact on internal and external decision-making processes. It examines the framework's dual objectives and its application within the context of the IIRC (International Integrated Reporting Council). The report discusses the channels through which integrated reporting impacts businesses, including capital market and real effects channels, and analyzes the significance of IRQ (Integrated Reporting Quality) in terms of liquidity, cost of capital, and future cash flows. The report also evaluates the implications of integrated reporting based on the South Africa data, and the study highlights the positive impact of the IIRC framework, emphasizing its relationship with investment efficiency, and the need for companies to comply with the rules and regulations associated with the integrated reporting framework. The report also identifies the limitations of the study, highlighting the importance of training employees regarding the adoption of the strategy involved in the business.

Running head: INTEGRATED REPORTING
INTEGRATED REPORTING
Name of the student:
Name of the university:
Author Note:

1INTEGRATED REPORTING
Table of Contents
In Response to Question 1..........................................................................................................2
Brief description of the article’s content................................................................................2
Area of integrating reporting..................................................................................................2
Contemporary financial and integrated reporting..................................................................2
In Response to Question 2..........................................................................................................2
In Response to Question 3..........................................................................................................4
Reference....................................................................................................................................5

2INTEGRATED REPORTING
In Response to Question 1
Brief description of the article’s content
The international integrated reporting council framework focuses on two different
frameworks, it mainly insists on internal decision-making and the other one is to provide
information to the outside community of the financial association. It gently helps to maintain
the quality of the report associated with the integrated report quality management associated
with it. There are mainly two kinds of channels associated with it, one is the capital market
channel and the other one is the real effects channel (Barth et al. 2017).
Area of integrating reporting
However, in order to conduct these types of test it is maintained to allot the feedback about
referring liquidity, cost of capital, expected future cash flows. IRQ measurement is mainly
focused in terms of allocating the reporting quality within the organization in return to make
it a positive attribute for following up the betterment of cash flows (Lourenço, Martin and
Stützle, 2019). It is however focused on benefiting the investors who are expecting higher
result from the market with assuring higher forecast accuracy.
Contemporary financial and integrated reporting
Integrated reporting focuses on the reporting source by which it helps to entitle the release of
framework (Rinaldi, Unerman and De Villiers, 2018). The policy of accounting standard
helps to create efficiency of using the framework standards most perfectly with analyzing the
principle. It is practiced by addressing the traditional corporate reporting by enhancing the
financial and non-financial based information. Intellectual, social-benefits, financial capitals
are the constraints which is beneficial for the company in practicing to overcome the factors
of considering revising and later it helps to bring the combination of the financial structure,
interrelatedness and also the dependency associated with it. These are the particular reasons
which usually helps to make my study more informative and easy as this report is focused
mainly on the financial and integrated type of reporting basis.
In Response to Question 2
The problem statement, which is related to the IIRC framework where the main
objective of the integrated reporting is based on the dual objectives, which deals with
providing information to the internal and external decision makers. With the available

3INTEGRATED REPORTING
information applicable in the framework, it is not quite enough for the business to follow the
given framework which is laid in the norms of IIRC (Barth et al. 2017). The accounting firm
follows the rules and regulation of the IIRC and there are loopholes in the system. The
integrated report is prepared based on the rules of the framework. In case of the decision,
making it is important for the upper level management of the company to evaluate the
internal and external decision making of the company. The internal management of the
company further implements the tools and techniques utilized in that case. In terms of raising
the capital in the business, it is quite important that the external shareholders of the company
is aware about the changes in the internal management of the firm.
The management must understand the significant impact in the rules and regulation,
which is laid in the IIRC along with the IASB standards. The potential strength and weakness
in the rules and regulation must be identified by the internal management system of the
company. There must be standards in the integrated management system of the company. The
accounting bodies must comply with the changes in the system of the framework due to the
fact that the such changes will definitely create impact in the financial statement of the
company. The decision making of the business is completely depended in the process or
rather the current financial position of the business and accordingly it is needed to predict the
future prospects of the firm.
The major finding in this case is that there is strong support in the integrated reporting
on behalf of the large accounting firms of the company which actually includes the
professional accounting bodies along with the standard settlers. In case of financing the
capital of the business it is needed to identify the loopholes or the significant glitches in the
system of the company. Hence it is quite significant for the business to understand the
significance in the business prospects of the company regarding the application of the
business.
At the time of creating value of the company, the business must be complied with the
significant rule and regulations which are associated in a significant manner. In case of the
SEBI there are alsocertainchanges, which are required so that the shareholders of the
company are not demotivated, based on the internal management system of the company. The
shareholders and the business follows the typical aspects of the norms included in the
framework.

4INTEGRATED REPORTING
The limitation to the study is that the company needs to adopt the changes or rather
the significant upgrade in the norms which are required by the company. The business in that
case must provide the significant training to the employees regarding the adoption of the
strategy involved in the business (Barth et al. 2017). The process in that case are further
needed to be adopted for the purpose of decision making by the upper level management of
the company. The worldwide business of each country is basically inclined toward the
framework in the business. The company must analyze the shareholders prospects of the firm
along with the potential fluctuation in the business which may create impact in the
shareholders of the firm.
In Response to Question 3
According to the following article the implication of IIRC has been found to be having are
positive impact of the firms. The IIRC framework it observed the 2 possible channels, the
channels are real effects channel and capital market channel(Barth et al.2017). Real effect
channels are needed in order to reflect the internal decision making quality and with the help
of the capital market channels the reflective information’s in that case are needed to be
collected. According to the South Africa data the firm listed on JSE where integrated findings
are mandatory. The JSE separate firm value into the three factors- cost of capital, liquidity
and cash flow which is expected by future. So the firm values that are support both channels.
It has been found that there has been direct relationship among the liquidity concept and IRQ
which will definitely create impact in the capital market. This is actually possible to enabling
the information’s obtained by shareholders for participating in the capital market for the
purpose of predicting the positive cash flow in the business. The finding reveal that there are
evidences which indicated that the future cash flow results are attributes to improved internal
decision making and real effect (Barth et al. 2017). The research has linked IRQ to
investment and found that the advantage in IRQ accelerates investments efficiency.

5INTEGRATED REPORTING
Reference
Lourenço, H.R., Martin, O.C. and Stützle, T., 2019. Iterated local search: Framework and
applications. In Handbook of metaheuristics (pp. 129-168). Springer, Cham.
Rinaldi, L., Unerman, J. and De Villiers, C., 2018. Evaluating the integrated reporting
journey: insights, gaps and agendas for future research. Accounting, Auditing &
Accountability Journal, 31(5), pp.1294-1318.
Barth, M.E., Cahan, S.F., Chen, L. and Venter, E.R., 2017. The economic consequences
associated with integrated report quality: Capital market and real effects. Accounting,
Organizations and Society, 62, pp.43-64.