Financial reporting on its own may not provide satisfactory insight into business performance, this has led to increasing concern over the past years that the report may no longer be a useful tool for investment decision making. Investors and stakeholders are now searching for a more holistic representation of how organizations create value that impact their business model now and in the medium to long term.
In solving this problem the International Integrated Reporting Council (IIRC) published an International Integrated Reporting Framework in 2013, which promote a more cohesive, efficient, and decision-relevant approach to corporate reporting that, focuses “on the creation of value over the short, medium, and long term. The framework aim at ‘improving the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital.
Integrated reporting is the process of giving a clear and concise communication about how an organization’s strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term. It is now used by organizations to communicate a concise integrated story that explains how all of their resources are creating value.
Integrated Reporting is helping businesses to think holistic manner about their strategy and plans, make informed decisions and manage key risks to build investor and stakeholder confidence and improve future performance.
Benefits of Integrated Reporting
One of the most important and most common benefits that organizations experience is a new and better understanding of how organizations create – or destroy – value. But Integrated Reporting offers more than just one benefit to organizations.
- It helps to enhance more integrated thinking and planning in the organization.
- It gives greater clarity on business issues and performance. IR provides greater insights into factors driving business performance.
- It demonstrates the links between its financial performance and its wider social, environmental and economic context.
- It improves corporate reputation and stakeholder relationships by telling a storyof how value is created more effectively, both internally and externally.
- It gives more resourceful reporting for both users and preparers of reports.
- It engages the employee.
At INCE Consulting Limited, it is our responsibility to be of immediate assistance to any Organization to advise them on how best to manage all their business issues with little or no disruption to their business operations.
Contact us at info@inceconsulting.com or +234 (0) 803 876 7883 to get expert help because we are the best business support service partner you can get.
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