What is the main purpose of Integrated Reporting?
Understand the Problem
The question is asking about the main purpose of Integrated Reporting. It is likely looking for an understanding of how Integrated Reporting is used in the context of business and management to communicate value creation comprehensively. The options provided suggest a focus on financial performance versus a broader value creation perspective.
Answer
To explain value creation to financial capital providers.
The main purpose of integrated reporting is to explain to providers of financial capital how an organization creates, preserves, or erodes value over the short, medium, and long term.
Answer for screen readers
The main purpose of integrated reporting is to explain to providers of financial capital how an organization creates, preserves, or erodes value over the short, medium, and long term.
More Information
Integrated reporting focuses on providing information to financial capital providers due to their influence on resource allocation, ensuring a comprehensive view of an organization's value creation over time.
Tips
Confusing integrated reporting with traditional financial reporting can be a mistake, as the former includes broader considerations like strategy and governance.
Sources
- Integrated Reporting Framework (<IR> Framework) - IAS Plus - iasplus.com
- Integrated Reporting | Purpose of Integrated Reporting - mbgcorp.com
