Question

Which of the following statement/s about an Integrated Reporting Framework is/are true?

i . It is concerned only with six capitals: financial, manufactured, intellectual, human, social and relationship and natural.

ii It is only concerned with non-financial information.

iii. It can provide information useful for making decisions.

Answer 1

The Below statements are true for Integratred Reporting Framework

1i) It is concerned only with Six capital: Financial, Manufactured,intellectual,human,social and relationship and natural.

The Framework defines six capitals:  • Financial (pool of funds obtained through financing for use in the production of goods and services e.g. debt or equity capital) • Manufactured (manufactured physical objects for use in the production of goods or services e.g. equipment) • Intellectual (organisational knowledge-based intangibles e.g. patents)  • Human (peoples’ competencies, capabilities and experiences)  • Social and relationship (institutions and relationships within and between communities e.g. values, brand, reputation)  • Natural (environmental resources e.g. water, biodiversity)

iii) It can provide information useful for making decisions.

Integrated thinking is defined as “the active consideration by an organisation of the relationships between its various operating and functional units and the capitals that the organisation uses or affects. “ Integrated thinking leads to integrated decision-making and these two together will result naturally in integrated reporting and an integrated report.

Integrated thinking is defined as “the active consideration by an organisation of the relationships between its various operating and functional units and the capitals that the organisation uses or affects. “ Integrated thinking leads to integrated decision-making and these two together will result naturally in integrated reporting and an integrated report.