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The Chartered Institute of Public Finance and Accountancy (CIPFA) has welcomed a consultation launched today on a draft International Integrated Reporting Framework.
The Consultation Draft of the International Integrated Reporting Framework was released by the International Integrated Reporting Council (IIRC). It provides the foundations for a new reporting model to enable organisations to provide a concise communication to stakeholders of how they create value over time. While the focus of the draft is on business reporting, the initial work that CIPFA has carried out in conjunction with the IIRC, and with input from the International Federation of Accountants (IFAC), shows that the principles are potentially applicable to the public sector.
Integrated Reporting differs from the current reporting landscape in a number of important ways, in particular through the introduction of the concept of six capitals; a prism through which organizations should assess, and then report, the degree to which they are creating, diminishing or destroying value over time. The capitals are: financial, manufactured, intellectual, human, social and relationship, and natural.
Although some of these ideas are expressed from a private sector perspective, CIPFA believes that with suitable interpretation they could provide strong support for organisations in meeting the broader accountability requirements of the public sector.
Ian Carruthers, CIPFA’s Policy and Technical Director, said
“Today’s publication of the draft International Reporting Framework is an important step forward in corporate reporting. Our initial research shows that its principles are potentially applicable to the public sector. We look forward to taking this research further and establishing how best to apply the Framework principles in the public sector context.”
Contact: Matthew Patterson
CIPFA Press Office
t 0207 543 5787
Notes to Editors:
T: +44 (0)20 7543 5703
T: +44 (0)20 7543 5830