F2 - C7 - Integrated Reporting

Question 1

Define integrated reporting

Answer 1

A concise communication about how an organisation’s strategy, governance, performance
and prospects, in the context of its external environment, lead to the creation of value over
the short, medium and long term

Question 2

What is the purpose of integrated reporting?

Answer 2

1. Increase the quality of information available
2. Provide a more cohesive and efficient approach to corporate reporting
3. Enhancing accountability and stewardship
4. Supporting integrated thinking, decision-making and value creation

Question 3

What are the three fundamental concepts of integrated reporting

Answer 3

1. The capitals
2. The value creation process - Taking the capitals and adding to them to create something valued
3. Value creation - For the organisation and for others

Question 4

What steps are in the IR Framework guidance for reports

Answer 4

1. Establish process parameters
2. Identify relevant matters
3. Evaluate importance
4. Prioritise importance
5. Set reporting boundary
6. Determining disclosures

Question 5

Benefits of the IIRC framework

Answer 5

Reduce barriers to information transfer
Encourages long term planning
Provide the full picutre to investors

Question 6

Limitations of the IIRC framework

Answer 6

Defining performance measures
Too long
Lack of balanced information
Determined materiality

Question 7

What are the 6 Capitals

Answer 7

Financial - Pool of funds available
Manufactured - Produced physical objects available
Intellectual - All knowledge based intangibles
Human - Peoples competencies, capabilities and experience
Social and relationship
Natural - All renewable and non-renewable environmental resources and processes