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Framework For
Integrated
reportIng and the
Integrated report
dIscussIon paper
25 JAnuARy 2011

The Discussion Paper has been released by the Integrated Reporting Committee (IRC) of South Africa. The IRC invites public comment on the Discussion Paper. Please email your comments to ircomments@saica.co.za

The last day for comment is 25 April 2011.
The Discussion Paper can be downloaded from www.sustainabilitysa.org

contents
Foreword

1

1.

Introduction

3

The context of an integrated report

3

1.2. What does the Discussion Paper cover?

5

1.3. Who is the Discussion Paper for?

5

1.4. Who developed the Discussion Paper?

5

1.5. Integrated reporting and the integrated report

5

1.6. The objectives of integrated reporting and the integrated report

6

1.7.

What is an integrated report?

6

Reporting principles

8

1.1.

2.

2.1. Principles informing the report scope and boundary

8

2.2. Principles informing the selection of the report content

9

2.3. Principles informing the quality of the reported information 3.

Suggested elements to be addressed in the integrated report

10
12

3.1. Report profile (What is the scope and boundary of the report?)

12

3.2. Organisational overview, business model, and governance structure (How do we create value and make decisions?)

12

3.3. Understanding the operating context
(What are the circumstances under which we operate?)

13

3.4. Strategic objectives, competencies, KPIs and KRIs
(Where do we want to go and how do we intend to get there?)

14

3.5. Account of the organisation’s performance
(How have we fared over the reporting period?)

14

3.6. Future performance objectives (Informed by our
recent performance, what are our future objectives?)

15

3.7.

Remuneration policies
(What is our approach towards remuneration?)

3.8. Analytical commentary
(What are the views of the leadership about the organisation?) 4.

Assurance

16
16
17

Annex 1 – King Code of Governance Principles for South Africa 2009 and integrated reporting

18

Annex 2 – Guidance on the process for developing an integrated report

19

Annex 3 – Statement by the governing structure of an organisation to accompany an integrated report

23

Research references

24

Acknowledgements

25

2

Foreword
The King Code of Governance Principles for South Africa 2009 (King III) states that “current incremental changes towards sustainability are not sufficient - we need a fundamental shift in the way companies and directors act and organise themselves” King III’s recommendation that organisations adopt integrated .

reporting represents an important element of this ‘fundamental shift’ and a significant and timely evolution in corporate reporting practice.
The requirement for listed companies to file financial reports emerged out of the Great Depression in the early 1930s with the Securities Act of 1933 requiring companies to provide potential investors with sufficient information to make an informed investment decision. Much later, in the 1990s, some leading companies voluntarily began to publish sustainability reports reflecting a growing understanding of sustainability challenges and stakeholder calls for more informed corporate disclosure. Now, in the context of the global financial crisis and amidst increasing evidence that the current economic model is socially and environmentally unsustainable and that current reporting practice is not delivering, it is time for new and more effective forms of accountability.

The string of corporate collapses over the past decade has led many stakeholders to question the relevance and reliability of annual financial reports as a basis for making decisions about an organisation. Reports based largely on financial information do not provide sufficient insight to enable stakeholders to form a comprehensive picture of the organisation’s...
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