The International Integrated Reporting Council (IIRC) in collaboration with the Institute of Certified Management Accountants (CMA) of Sri Lanka held a focus group on the proposed global changes to the Integrated Reporting Framework. The event was held on July 8 with Chairman of the IIRC Mervyn Mau E. King delivering the keynote address.
King noted the impact of the Coronavirus epidemic on the health of corporate balance sheets. King said “the business model has to look at the next 18 months. We are going to be in survival mode. The economy has been impacted by the regulations to stem the spread of the coronavirus. Some economies were already on their knees before the Coronavirus arrived. Companies are swimming in a sea of crises. Directors have to have a mindset to deal with this survival. They have to make decisions in the best long term interests of all in the company. If they go into liquidation now, the infrastructure will grow at very little because of the state of the economy.”
King called on Public interest organizations to work together towards common objectives. He said “Looking at SDG 17 which is cooperation. We see them trying to come up with a vaccine. This collaboration is necessary for survival.”
The IIRC notes ‘An integrated report is a concise communication about how an organization’s strategy, governance, performance, and prospects, in the context of its external environment, lead to the creation, preservation or erosion of value over the short, medium and long term.’
The new Integrated Reporting framework is a minor change to the existing framework. Companies will now be able to state the extent to which they are following the framework as opposed to requiring complete compliance.
The process for revisions of the framework comes with 90 days for feedback and proposal drafting. Two documents from the IIRC have been made public detailing feedback on the proposed revision.
Integrated reporting can be used for government, public, and private organizations. The amended framework is expected to be adopted between November and December this year.
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