The International Integrated Reporting Council (IIRC) on 19 January 2021, published revisions to the International <IR> Framework to enable more decision-useful reporting.
The revisions, the first since the <IR> Framework was originally published in 2013, are the result of extensive market consultation with 1,470 individuals in 55 jurisdictions. The consultation demonstrated that the conceptual thinking and principles of the <IR> Framework remain fit for purpose and robust, as evidenced by the 2,500 organizations in over 70 countries that use it.
However, analysis of the feedback by the IIRC’s <IR> Framework Panel identified opportunities to clarify concepts, simplify guidance for report preparers and underpin better quality integrated reports.
The revisions focus on a simplification of the required statement of responsibility for the integrated report; improved insight into the quality and integrity of the underlying reporting process; a clearer distinction between outputs and outcomes; and a greater emphasis on the balanced reporting of outcomes and value preservation and erosion scenarios.
Charles Tilley, CEO, IIRC said, “Since 2013, the <IR> Framework has progressed the quality of reporting around the world. It has enabled businesses to assess their ability to create value in the short, medium and long term, to improve their communication with investors and key stakeholders, and driven a more cohesive and efficient approach to reporting that enhances accountability and stewardship across financial, natural, manufactured, human, intellectual, and social and relationship capital.
“As business resilience is tested so severely in the wake of the global pandemic, climate change and growing inequality, effective integrated thinking and reporting is more important than ever. We believe these revisions can help businesses deliver more robust, balanced reporting. The revisions are also aligned with our efforts to develop a global, comprehensive corporate reporting system.”
Lisa French, Chief Technical Officer, IIRC who oversaw the consultation and revision process added, “This revised <IR> Framework is the culmination of invaluable feedback we received from our stakeholders globally and the tireless efforts of our dedicated and expert <IR> Framework Panel to identify key areas for clarity and simplification. As a market-led movement, the input of business, investors, the accountancy profession and experts in the field is essential. As a result, the revised <IR> Framework is now in an even better position to support the journey to integrated reporting.”