International Integrated Reporting Council (IIRC)
Definition
The International Integrated Reporting Council (IIRC) is a global alliance comprising representatives from the corporate, investment, accounting, regulatory, academic, and standard-setting sectors. The primary goal of the IIRC is to foster the adoption of integrated reporting (IR) as a standard practice for businesses worldwide. Integrated Reporting combines financial and non-financial data into a single report, covering governance, stewardship, sustainability, and financial performance to show how organizations create value over time.
Key Points
- Establishment: Founded in 2010, with Professor Mervyn King as its chair.
- Framework: Published its first draft Framework on Integrated Reporting in 2013.
- Purpose: To integrate aspects like governance, sustainability, and financial data to show overall value creation.
Examples
- Unilever: A pioneer in integrated reporting, offering insights into sustainability initiatives alongside financial results.
- Marks & Spencer: Uses integrated reporting to illustrate its environmental and social governance activities.
- Novo Nordisk: Highlights how its strategies create value over multiple capitals (financial, manufacturing, human, social).
Frequently Asked Questions
What is the purpose of integrated reporting? Integrated reporting aims to detail how an organization creates value over short, medium, and long terms by integrating financial and non-financial factors into a single cohesive report.
Who are the primary users of integrated reports? The main users are providers of financial capital, but it is also useful for other stakeholders including employees, customers, suppliers, regulators, and communities in which the organization operates.
What entities make up the IIRC? The IIRC is a coalition of various stakeholders including representatives from corporate, investment, accounting, regulatory, academic, and standard-setting sectors.
What was a significant milestone for the IIRC? The publication of the draft Framework on Integrated Reporting in 2013 was a significant milestone.
Who chairs the IIRC? Professor Mervyn King is the current chair.
Related Terms
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Global Reporting Initiative (GRI): An organization that provides a comprehensive sustainability reporting framework, generally more focused on environmental, social, and governance (ESG) factors.
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Triple Bottom-Line Accounting: A framework accounting for social, environmental, and financial impact to evaluate corporate performance comprehensively.
Online Resources
- IIRC Official Website
- Global Reporting Initiative (GRI)
- Sustainability Accounting Standards Board (SASB)
Suggested Books for Further Studies
- “The Integrated Reporting Movement: Meaning, Momentum, Motives, and Materiality” by Robert G. Eccles and Michael P. Krzus.
- “One Report: Integrated Reporting for a Sustainable Strategy” by Robert G. Eccles, Michael P. Krzus.
- “Accounting for Sustainability: Practical Insights” edited by Anthony Hopwood, Jeff Unerman, and Jessica Fries.
- “Purpose and Profit: How Business Can Lift Up the World” by George Serafeim.
Accounting Basics: “International Integrated Reporting Council (IIRC)” Fundamentals Quiz
Thank you for diving into the nuances of integrated reporting and the work of the IIRC. Remember, understanding these concepts can greatly enhance your ability to evaluate and present comprehensive organizational performance.
