But reports produced under the Framework need to stay
focused on meeting investor needs
KPMG has welcomed the release of the International Integrated
Reporting Council's (IIRC) Consultation Draft of the
International Integrated Reporting Framework.
The International Integrated Reporting Framework is an important
step on the journey towards better business reporting that could
ultimately address the gap between reporting content and business
value. According to KPMG, Integrated Reporting provides an
opportunity for companies to make their case for capital more
effectively by focussing their reporting on their business story
and value creation.
"We applaud the work of the IIRC and urge regulators,
investors and governments to actively drive for change for better
business reporting which can help ensure future financial
stability. We need to grasp the opportunity for reform," said
Alan Buckle, Deputy Chairman of KPMG International.
Whilst welcoming the Consultation Draft as an important step in
the evolution of corporate reporting, KPMG also called on the IIRC
to address the many different interpretations of Integrated
Reporting currently being promoted. KPMG anticipates that the final
version of the Framework will address any risk of misinterpretation
to ensure reports stay focussed on helping readers understand how
the earnings potential of the business has been developed and
protected. The test of success would be whether Integrated
Reporting is able to provide investors with the information needed
to take better judgements on businesses' ability to generate
returns over the long term.
According to David Matthews, leader of KPMG's Integrated
Reporting team "Integrated Reporting provides an opportunity
to re-align corporate reporting with investor
decision-making. It is an opportunity to shift the reporting
focus from short term financial performance to long term value
From a South African perspective Mark Hoffman, Director for
Accounting Advisory Services at KPMG in South Africa, says
"Integrated reporting is well on its way in South Africa. The
Integrated Reporting Consultation Draft will further advance,
enhance and refine the thinking of companies in their approach to
adopting integrated reporting as an integral business
KPMG believes the concept of implementing integrated reporting
around your business model and strategies; with a focus on how the
business had been developed, will be particularly attractive to
management teams looking to move their investor dialogue beyond
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