Integrated reporting Flashcards
1
Q
what is Integrated reporting
A
concise communication by the organisation of the relationships between its various and fundamental units and the capitals the organisation uses or affects
2
Q
problems IR helps solve
A
- reports tend to be backwards looking
- focus on sustainability
- lack of long term vision
- incentive schemes based on wrong targets
3
Q
what are the 6 capitals of IR
A
Financial
Manufactured
Human
Intellectual
Natural
Social
4
Q
What is the purpose of capitals?
A
- underpin value creation
- don’t need to be followed to the letter
- used as a guideline
- organisations then consider all forms of capital used
5
Q
What are the benefits of IR
A
- connecting departments
- imported internal process
- articulation of strategy
- improved performance
6
Q
Limitations of IR
A
- Time and cost preparing
- Management reluctant to disclose future looking information
- reliability of data
