Updated guide on using the Integrated Reporting Framework while considering IFRS® Sustainability Disclosure Standards

The integrated report is a concise communication about how an organisation’s strategy, governance, performance and prospects, in the context of its external environment, lead to value creation over time. It drives high-quality corporate reporting and connectivity between financial statements and sustainability-related financial disclosures, and brings together information investors need to assess a company’s ability to create value over time. An integrated report should be prepared in accordance with the Integrated Reporting Framework (IR Framework), which is an IFRS Foundation resource.

Although integrated financial reports are not mandatory in Australia, entities may choose to prepare these by applying both the IR Framework and IFRS Sustainability Disclosure Standards as these are complementary tools for investor-based communications. To assist in this process, the IFRS Foundation updated its guide, Transition to integrated reporting: A guide to getting started’, which provides a phased approach for implementing the IR Framework, and helps preparers understand how IFRS Sustainability Disclosure Standards can be used in their reporting process.

More information

Entities preparing integrated financial reports can also refer to the IFRS resources on the Knowledge Hub for a mapping tool that demonstrates how to apply the Integrated Reporting Framework with IFRS S1 and IFRS S2 from next year. These resources are designed to guide companies on where IFRS S1 and IFRS S2 information regarding governance, strategy, risk management, and metrics and targets relates to the integrated report categories of governance, business model, risks and opportunities, strategy and resource allocation, performance, and outlook.

Here to help

With more than one source of reference to consider, preparing your first integrated and sustainability reports can be a daunting task. Our sustainability reporting experts are here to help. Please contact us today.