Analysis of 'It's a Matter of Trust' Article on Integrated Reporting

This report provides an in-depth review of the article "It's a matter of trust: Exploring the perceptions of Integrated Reporting preparers." The article examines the International Integrated Reporting Council (IIRC) and its efforts in developing an effective framework for integrated reports. The review focuses on the perceptions of individuals who prepare integrated reports, gathered through interviews conducted by the IIRC and its partners. The article highlights concerns about the credibility and authenticity of integrated reports, as perceived by the preparers, and suggests preventive measures. The report analyzes the article's problem statement, methodology (interview method), findings (lack of clear guidance, lengthy and complicated format, and high costs), and limitations (reliance on preparers' perceptions and time-consuming data collection). The article's impact is discussed, including its contribution to improving the integrated reporting framework, guiding business activities, and expanding accounting expertise, while also acknowledging potential negative impacts during the initial stages of implementation. The report emphasizes the importance of integrated reporting in enhancing corporate transparency and decision-making.

Article Review

Table of Contents
Overview of article......................................................................................................................1
Issue of article.............................................................................................................................1
Impact of Articles........................................................................................................................2

Overview of article
This article is based on International Integrated Reporting Council and its efforts on
formulation of an effective framework for integrated report. The article revolves around
evaluating perception of individuals who prepares integrated report of an organisation.
Information related to preparers has been collected with the medium of an interview in which
certain list of questions related to Integrated report for have been asked to the preparers. This
interview was conducted by IIRC and its partners in order to analyse opinions of preparers
related to corporate especially integrated report (Chaidali and Jones, 2017). This interview have
created various of questions in the mind of interviewee that what is the major concern of IIRC
and its partners behind the interview. These preparers believes that IIRC board is not satisfied
with credibility of Integrated report and has doubt related to trust and authenticity of prepared
report. Overall, this article gives brief description about concern on IIRC and its partner towards
credibility of Integrated report. It has also given some preventive measures which should be
adopted by the preparers while preparing an authentic corporate report mainly integrated report
which can provide overall knowledge of an company including financial as well as other
segments. As being the student of Contemporary Financial and Integrated Reporting, this article
has been selected as it provides deep knowledge on trust in social relationships between
International Integrated Reporting Council and preparers of integrated report.
Issue of article
As per the deep evaluation of the article “It’s a matter of trust: Exploring the perceptions
of Integrated Reporting preparers”. It has been analysed that main objective of the IIRC and its
partners is to prepare an effective integrated report for companies in order to improve business
practice in effective manner (Adams, 2015). This council prepares report for both public as well
as private sector companies who are associated with them. It can be said that this article carries
some issues related to thoughts and perception of preparers of integrated report. Problem
statement, used methodology, findings and limitation of study have been described below:
Problem statement: The main problem statement of article is less efficiency of
integrated report
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Methodology: In order to understand perception of preparers related to integrated report ,
IIRC and its partners have used interview method. This methodology is helpful in interacting
with preparers and understanding their deep knowledge integrated report, its making process,
changes required, issues of IR, some suggestion that could contribute in improving it etc. It has
been analysed that interview method is an effective methodology for understanding views and
perception of interviewee on particular topic. It can be said that, in this method interviewer can
easily identify that whether interviewee is giving true information or not (De Villiers, Rinaldi
and Unerman, 2014). Along with questions can be altered according to the suitability of time and
demand of situation.
Findings: From the interview method, it has been analyse that it is believed by preparers
that they are not getting proper and clear guidance while preparing integrated report. Along with
this, it is believed by them that format of this report is very lengthy and complicated which
becomes major problem for preparer to formulate an effective report. Additionally, it has been
expressed by the preparers that making an effective integrated report is a expensive procedure
which consumes huge amount of company in preparation. It can be said that financial could
have been used in some other core areas for more benefits. As a result, it has been analysed that
Integrated report is required to be reshaped for more valuable outcomes.
Limitation of study: The main limitation of this study was that it is completely based on
thoughts and perception of preparers. It is considered as the negative factor as it has minimised
the option of information which would have been helpful in finding true information. Along with
this, chosen method for collecting information was a time consuming process which have took
too long to attain desired outcome (Eccles and Krzus, 2014). In addition to this, the interview
method have created various questions among preparers of integrated report regarding their work
and credibility of their prepared reports.
Impact of Articles
It has been observed that this article have contributed in the improvement of present
framework of integrated report. It can be said that issues faced by preparers have helped in
reshaping existing structure of the report which will be helpful for business organisation. Along
with this, it has been analysed that this new structure have created certain parameters for
employees of the company which will guide them to execute their business activities with
instruction. The new framework of integrated report also contributes in taking better decision for
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company as overall scenario of organisation is briefly described in the report related to finance,
manpower, policies, procedures and other relative function. It can be said that this information
will employees about the actual condition of organisation and helps them in taking right decision
accordingly. Furthermore, positive impact of reshaping integrated report can also be seen in the
form of expansion of accounting expertise territory with trust worthy relationships (Busco,
2013). Along with this, it has been realised that impact of improved structure of integrated report
has its positive impression over International Integrated Reporting Council and its partners as the
reshaping procedure have contributed in improving performance of preparers as they are now
getting required guidance from the new format as well as superior teams.
Apart from this, it can be said that this new format of Integrated report will also bring
some negative impact process of organisation as at the initial stage business organisation will
face problems related to acceptance of new framework of integrated report from the side of
preparers, stake holders and members of International Integrated Reporting Council. As it will
take some time in understand new structure and accept it like the previous one. As a result, there
some more chances that stakeholder will show some negligence in accepting new framework of
integrated reports.
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REFERENCES
Chaidali, P. P. and Jones, M. J., 2017. It’sa matter of trust: Exploring the perceptions of
Integrated Reporting preparers. Critical Perspectives on Accounting. 48. pp.1-20.
Adams, C. A., 2015. The international integrated reporting council: a call to action. Critical
Perspectives on Accounting. 27. pp.23-28.
De Villiers, C., Rinaldi, L. and Unerman, J., 2014. Integrated Reporting: Insights, gaps and an
agenda for future research. Accounting, Auditing & Accountability Journal. 27(7).
pp.1042-1067.
Eccles, R. G. and Krzus, M. P., 2014. The integrated reporting movement: Meaning, momentum,
motives, and materiality. John Wiley & Sons.
Busco, C. A., 2013. Integrated Reporting. Springer,.
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