May-2015

which it operates. All these are in addition
to the contents of traditional
corporate reporting. It is also intendeds
to provide a periodic, clear and
concise representation of how an organization
creates and preserves values
for all stakeholders now and shall
continue to do in future. The stated
mission of IIRC mission is to create
the globally accepted IR Framework
that will elicit pervasive material
information in a clear, concise and
comparable format. The Framework
is intended to underpin and accelerate
the evolution of corporate reporting,
reflecting developments in
financial governance, management
commentary and sustainability reporting.
EPM is an inclusive tool to view,
examine, and improve the key input
elements and results from operations
that distinguish an entity from
the rest. Primarily it is simple to
comprehend and as such the entire
organization can effectively be involved.
Secondly, this methodology
is outcome-based, focusing on minimization
of value destruction and
optimization of value generation. It
considers end to end operations of
an entity in a closed-loop model, defines
four disciplines and covers the
six stages of the closed-loop EPM
process model.
The four disciplines are strategy
formulation, business planning and
forecasting, financial management,
and supply chain effectiveness. The
six stages of the closed-loop are strategy
development, strategy translation,
organization alignment, operations
planning, learning and monitoring,
and finally testing and adaptation.
The task of alignment keeps in
view the value delivery continuum
commencing from the vision statement
and ends up with continuous
elevation in standards for achieving
all stakeholders’ delight through improved
value deliveries.
Evolution and Emerging Realities
of Corporate Reporting
Across the world corporate reporting
is undergoing huge metamorphosis.
It is transforming from mere
financial and governance related information
to an initiative by which
all forms of relevant information for
examining and evaluating the firm’s
qualitative and quantitative performance
and impacts thereof on society
will clearly and comprehensively
be reported. According to Peeva and
Noetzel(2009)2 investors now want
to combine the three key elements,
viz., environmental, social and governance
(ESG) into their analyses
and decision making. The present
authors wish to add unwavering focus
on 4P bottom line. Those 4Ps are
Product, Profit, Planet and People.
The investors want to be liberated
from their myopic view, as they
choose to become long term value
investors.
The process to integrate ESG is
now being spearheaded by IIRC
with the mission to create a globally
accepted IR framework to meet the
needs of a more sustainable global
economy. IIRC proposes to demonstrate
the linkages between an entity’s
strategy, governance, and financial
performance vis-a-vis the social,
environmental and economic context
within which it operates. Objective
is to enable managers to take
effective decisions and facilitate all
stakeholders to understand how an
organization is actually performing.
The ultimate objective is to enable
the organizations to continuously
defining their own destiny instead of
allowing Analysts and Stock Brokers
at large to influence investors while
forming their opinion about sustainable
value generation ability of an
entity. An Integrated Report should,
therefore, strive to deal with the following
key matters as illustrated in
Figure-1:
• Organizational overview and external
environment;
Figure: 1 - The guiding principles and content elements
Consistency and Comparability
Reliability and Completeneness
Opportunities
and Risks
Stretegic Focus and future orientation
Organizational
overview and external
Environment
Performance
Business Model
Materiality and Conciseness
Source: IIRC’s Draft for Consultation, December 2013
Governance
Future Outlook
Connectivity of Information
Strategy and Resource
Allocation
Stakeholder Responsiveness
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MAY 2015 the MANAGEMENT ACCOUNTANT 23