Question

What are three important things about integrated reporting with a brief synopsis of each item?

Answer 1

The main use of integrated report is to provide stakeholders the knowledge of how finance capital in organization creates value over time. This is useful to all stakeholders as employees, suppliers, business partners, creditors, local society and lawmakers amongst others.

The three important things about integrated reporting are as follows:

a. Strategic focus and future orientation: The integrated report provides eagle eye view of organization strategies and how these strategies would create value in the various timeframes of working of organization. The report also computes the impact and benefits of these strategies on the cost aspects as well.

b. Stakeholder relationships: The integrated report is about building connection and good relation with stakeholders. The conservative approach and quality reporting creates trust among stakeholders. The report provides how and to what extent, the organization takes the interest of stakeholders and valuing their legitimate needs and interests.

c. Materiality: The integrated report shall adequately report all the materials that are deemed relevant and material by standard yardstick. These material aspects affect the organization ability to create value over short and long term