The Development of integrated reporting and the role of the accounting and auditing profession

Abstract

A recent significant development in environmental, social and governance (ESG) reporting is the release of the International Integrated Reporting (<IR>) Framework by the International Integrated Reporting Council (IIRC) in December 2013. While there is widespread acknowledgement of the need to improve corporate reporting, a content analysis of the submissions to the IIRC's discussion paper, consultation draft and exposure documents present varied views of the accounting and auditing profession in respect of how Integrated Reporting IR might effectively apply its principles of reporting connectivity and relationships within organisations. This chapter examines IR and the participation of the accounting and auditing profession during its development, outlining key aspects of the International <IR> Framework. It draws on the profession's responses to discuss challenges for the accounting and auditing profession in maintaining its relevance in the evolving corporate reporting landscape. It concludes that the initial aims and promise of the International <IR> Framework have been somewhat diluted during the development process; the application of integrated thinking is crucial in achieving IR's potential, but there are significant challenges facing the profession particularly in respect to building its capacity and cultivating integrated thinking.

25 pages(s)