Beyond the financial reporting complexity issues noted above, there is the reality that the tangible assets included in financial statements reflect a steadily diminishing component of shareholder value. Framework's Guiding Principles on the connectivity of information and report presentation: The connectivity of information and the overall usefulness of an integrated report is enhanced when it is logically structured, well presented, written in clear, understandable and jargon-free language, and includes effective navigation devices, such as clearly delineated (but linked) sections and cross-referencing. by Carol Adams. The main output of integrated reporting is an integrated report; a single report that the IIRC anticipates will become an organization’s primary report.1. Integrated reporting, then, will include a lot more information about how the entity fits within the environment and society and how it creates long-term value. Future outlook: What opportunities, challenges and uncertainties is the organization likely to encounter in achieving its strategic objectives, and what are the resulting implications for its strategies and future performance?9. For the company, an important value lies in the preparation—the selection of metrics, the scrutiny and analysis of the business impacts and risks, the resultant insights and the subsequent adjustments to operations and even strategy. Reporting Council’s (IIRC) Framework for integrated reporting (IIRC, 2013) Participating in the exercise may lead businesses to re-examine the risks and opportunities in this new environment and the metrics used to manage the business. "The International Framework," p. 13, theiirc.org/international-ir-framework/, accessed April 2014. Performance: How has the organization performed against its strategic objectives and related strategies? Rethinking Capitalism for the Twenty-First Century. But they provide, thorough their MultiCapital Scorecard, a means for managing and evaluating that broader view of the organization. And even if you find a multicapital approach wrongheaded or the authors’ system too elaborate, the method may include useful ideas you can borrow for your own situation." Conciseness, reliability and materiality: An Integrated Report provides concise, reliable information that is material to assessing the organization’s ability to create and sustain value in the short, medium and long term.11. For example, the value of water use in a water-stressed area is higher than in an area of water abundance. According to the GRI, more than 4,000 professionals around the world have been trained in the use of the GRI Guidelines, which are available in 25 languages. What does it mean, for These pilots are expected to identify areas where more work is needed. Certain services may not be available to attest clients under the rules and regulations of public accounting. In a very real sense, then, the state of the art for non-financial capital theory and how it can or should be operationalized. Using the six capitals in the integrated report New preparers of integrated reports may wonder at how the six capitals referred to in the International Framework (Framework) should be presented in the integrated report. accounting is only now catching up to what financial managers have known all Fortunately, many organizations will not need to start the process from scratch. See Terms of Use for more information. Yorkshire Water, we use a Six Capitals framework to shape our sustainability accounting activities. No single, agreed-upon definition yet exists for an “integrated report.” However, there are two representative interpretations: An integrated report tells the overall story of the organization. = "The Integrated Reporting (multicapital) Framework categorises them as financial, manufactured, intellectual, human, social and relationship, and natural". There was not a great deal of variation in the average score by type of capital—a range of .33 from lowest to highest (Figure 7.2). The business processes producing this information are likely to be less sophisticated and robust than those producing financial data. But financial statements are not the end of it. Only the second revolution in accounting since double-entry bookkeeping began, it is of seismic proportions, driven by the 2008 financial crash and our ongoing environmental crisis.