Integrated Reporting | Financial Analysis and Reporting - B Com PDF Download

• Integrated reporting conveys how an organization's strategy, governance, performance, and future outlook contribute to value creation across short, medium, and long terms.
• The primary audience for integrated reports is financial stakeholders, but the report also benefits various other parties like employees, customers, and regulators.

• Organizational overview and external environment
• Governance
• Business model
• Risks and opportunities
• Strategy and resource allocation
• Performance
• Outlook
• Basis of preparation and presentation

Governance

• The governance section should detail how the organization's structure supports long-term value creation.
• It should cover leadership structure, decision-making processes, organizational culture's influence on value creation, and stakeholder relationships.

Business Model

• This part explains how the organization transforms inputs into outputs to fulfill its strategic objectives and create value over time.

Risks and Opportunities

• Information on specific risks and opportunities affecting value creation and the organization's strategies to address them should be included.

Strategy and Resource Allocation

• Details on the organization's goals, strategies, resource plans, and performance measurement methods should be outlined.

• This section assesses the organization's achievement of objectives and outcomes on various capitals.

• Discusses challenges, uncertainties, and how the organization is prepared to respond to future obstacles.
• Includes analysis of factors like the external environment, risks, opportunities, and capital management.

Basis of Preparation and Presentation

• Explains how the organization determines relevant content for the report and methods used for evaluation.
• Includes details on materiality determination, reporting boundaries, and evaluation frameworks.

• Sustainability ensures meeting present needs without compromising future generations' abilities to meet their own.

• Sustainable management involves improving economic, environmental, and social aspects simultaneously.
• Sustainability accounting supports organizations in this endeavor.

• Integrated thinking involves considering relationships between operational units and capitals for holistic decision-making.
• This approach leads to actions that create value over short, medium, and long terms.

Capital

• Organizations engage with various capitals such as financial, manufactured, intellectual, human, social and relationship, and natural.
• Each capital type plays a role in value creation, although not all are equally relevant to every organization.

Financial Capital

• Financial capital encompasses funds available for production, obtained through financing or generated internally.

Manufactured Capital

• Includes physical objects like buildings, equipment, and infrastructure used in production or services.

Intellectual Capital

• Comprises intangible assets like intellectual property and organizational knowledge.

Human Capital

• Encompasses people's skills, capabilities, motivations, and contributions to organizational success.

Social and Relationship Capital

• Encompasses relationships within communities, stakeholder networks, and brand reputation that enhance well-being.

Natural Capital

• Includes environmental resources like air, water, biodiversity, and land crucial for organizational prosperity.