One of the distinguishing features of Integrated Reporting is that in contrast to compliance based reporting, there can be no model report – every report must be built around the unique business model of the preparer.
The typical Annual Report:
The typical Annual Report includes the Financial Statements, Corporate Responsibility , The Management Discussion & Analysis and other Report.
What does the New Integrated Model Look Like?
The new Integrated Report should cover the six content elements and the five guiding principles to enable capital providers and other key stakeholders to make decisions about the business and its stewardship.
The Guiding Principles for Integrated Reporting:
- Strategic Focus
- Future Orientation
- Connectivity of information
- Responsiveness and stakeholder inclusiveness
- Conciseness, reliability and material
The new integrated model, attempts to meet investors’ needs about the value of the business and managements stewardship of the business.
We will describe in brief the six content elements.
For more details Click on the link to obtain the KPMG write up.
1.Organizational Overview and business model
The starting point is an explanation of how the business works and the factors which affect the continued operations of the business.
2. Operating context including risks and opportunities
This part of the report describes the external factors affecting the business both positively and negatively.
3. Strategic Objectives
This part of the report should explain the vision of how the organization will look in the future and how it will get there.
This part of the report describes current levels of performance both as a basis for assessing progress in delivering management’s strategic targets and as a base for understanding the future outlook for the business.
This part of the report should provide a basis for readers to form their own opinion on the long term prospects of the business
6. Governance and remuneration
We already have extensive coverage in our Annual Reports on governance, we should demonstrate the relevance of the Board’ experience. Readers should also know how strategic decisions are taken.
1. Review the Bombardier Annual Report , click on link: Have we satisfied the about 6 content elements described above?
2. Would the task be easy or difficult for Auditors to assess the corporations Future Outlook? How would auditors’ protect themselves from making any future predictions that are not obtained?
3. Do you feel that we need an New Integrated Model to present our Annual Reports or are we presently making our Annual Reports to complicated to understand?
To read the complete article written by Michael Bray, KPMG in Australia and Matt Chapman , KPMG in the UK: KPMG, click the following Link