Overview of article
This article is based on International Integrated Reporting Council and its efforts on formulation of an effective framework for integrated report. The article revolves around evaluating perception of individuals who prepares integrated report of an organisation. Information related to preparers has been collected with the medium of an interview in which certain list of questions related to Integrated report for have been asked to the preparers. This interview was conducted by IIRC and its partners in order to analyse opinions of preparers related to corporate especially integrated report (Chaidali and Jones, 2017). This interview have created various of questions in the mind of interviewee that what is the major concern of IIRC and its partners behind the interview. These preparers believes that IIRC board is not satisfied with credibility of Integrated report and has doubt related to trust and authenticity of prepared report. Overall, this article gives brief description about concern on IIRC and its partner towards credibility of Integrated report. It has also given some preventive measures which should be adopted by the preparers while preparing an authentic corporate report mainly integrated report which can provide overall knowledge of an company including financial as well as other segments. As being the student of Contemporary Financial and Integrated Reporting, this article has been selected as it provides deep knowledge on trust in social relationships between International Integrated Reporting Council and preparers of integrated report.
Issue of article
As per the deep evaluation of the article “It’s a matter of trust: Exploring the perceptions of Integrated Reporting preparers”. It has been analysed that main objective of the IIRC and its partners is to prepare an effective integrated report for companies in order to improve business practice in effective manner (Adams, 2015). This council prepares report for both public as well as private sector companies who are associated with them. It can be said that this article carries some issues related to thoughts and perception of preparers of integrated report. Problem statement, used methodology, findings and limitation of study have been described below:
Problem statement: The main problem statement of article is less efficiency of integrated report
Methodology: In order to understand perception of preparers related to integrated report , IIRC and its partners have used interview method. This methodology is helpful in interacting with preparers and understanding their deep knowledge integrated report, its making process, changes required, issues of IR, some suggestion that could contribute in improving it etc. It has been analysed that interview method is an effective methodology for understanding views and perception of interviewee on particular topic. It can be said that, in this method interviewer can easily identify that whether interviewee is giving true information or not (De Villiers, Rinaldi and Unerman, 2014). Along with questions can be altered according to the suitability of time and demand of situation.
Findings: From the interview method, it has been analyse that it is believed by preparers that they are not getting proper and clear guidance while preparing integrated report. Along with this, it is believed by them that format of this report is very lengthy and complicated which becomes major problem for preparer to formulate an effective report. Additionally, it has been expressed by the preparers that making an effective integrated report is a expensive procedure which consumes huge amount of company in preparation. It can be said that financial could have been used in some other core areas for more benefits. As a result, it has been analysed that Integrated report is required to be reshaped for more valuable outcomes.
Limitation of study: The main limitation of this study was that it is completely based on thoughts and perception of preparers. It is considered as the negative factor as it has minimised the option of information which would have been helpful in finding true information. Along with this, chosen method for collecting information was a time consuming process which have took too long to attain desired outcome (Eccles and Krzus, 2014). In addition to this, the interview method have created various questions among preparers of integrated report regarding their work and credibility of their prepared reports.
Impact of Articles
It has been observed that this article have contributed in the improvement of present framework of integrated report. It can be said that issues faced by preparers have helped in reshaping existing structure of the report which will be helpful for business organisation. Along with this, it has been analysed that this new structure have created certain parameters for employees of the company which will guide them to execute their business activities with instruction. The new framework of integrated report also contributes in taking better decision for company as overall scenario of organisation is briefly described in the report related to finance, manpower, policies, procedures and other relative function. It can be said that this information will employees about the actual condition of organisation and helps them in taking right decision accordingly. Furthermore, positive impact of reshaping integrated report can also be seen in the form of expansion of accounting expertise territory with trust worthy relationships (Busco, 2013). Along with this, it has been realised that impact of improved structure of integrated report has its positive impression over International Integrated Reporting Council and its partners as the reshaping procedure have contributed in improving performance of preparers as they are now getting required guidance from the new format as well as superior teams.
Apart from this, it can be said that this new format of Integrated report will also bring some negative impact process of organisation as at the initial stage business organisation will face problems related to acceptance of new framework of integrated report from the side of preparers, stake holders and members of International Integrated Reporting Council. As it will take some time in understand new structure and accept it like the previous one. As a result, there some more chances that stakeholder will show some negligence in accepting new framework of integrated reports.
- Chaidali, P. P. and Jones, M. J., 2017. It’sa matter of trust: Exploring the perceptions of Integrated Reporting preparers. Critical Perspectives on Accounting. 48. pp.1-20.
- Adams, C. A., 2015. The international integrated reporting council: a call to action.Critical Perspectives on Accounting. 27. pp.23-28.
- De Villiers, C., Rinaldi, L. and Unerman, J., 2014. Integrated Reporting: Insights, gaps and an agenda for future research. Accounting, Auditing & Accountability Journal. 27(7). pp.1042-1067.
- Eccles, R. G. and Krzus, M. P., 2014. The integrated reporting movement: Meaning, momentum, motives, and materiality. John Wiley & Sons.
- Busco, C. A., 2013. Integrated Reporting. Springer,.