This report examines the reporting practices of organisations in the International Integrated Reporting Council’s <IR> Business Network, based on report reviews produced over the past four years. It discusses the challenges that preparers have faced, and highlights areas for further improvement.
ACCA identifies areas where the quality of reporting is stronger, including:
• the description of the business and its context
• the strategy of the organisation
• the risks and their mitigation.
Areas for improvement include descriptions of:
• the outlook for the business
• statements of responsibility for the reports.
ACCA encourages reporting organisations to set out a clear explanation that links the strategy and performance measures together – linking value creation over the shorter and longer term to the different capitals that the organisation depends on. Reports could also provide better forward-looking information in the form of targets for KPIs and the outlook facing the business.