BUS5IAF, SEMESTER 2 2016, ACCOUNTING ASSIGNMENT - (20 MARKS) DATE OF SUBMISSION: 23rd October, 2016 - 11.55 PM 10% of your Assessment INTEGRATED REPORTING IN AUSTRALIA In August 2010, the International Federation of Accountants, the Global Reporting Initiative (GRI), and the Prince of Wales' Accounting for Sustainability Project formed the International Integrated Reporting Committee (IIRC). The purpose of the Committee is to create a globally accepted integrated reporting framework. The discussion paper, released in September 2011, sets out the vision for integrated reporting. Since then, IR has helped businesses to take a holistic approach to reporting their strategy, manage key risks and the impact of the environmental and social issues on their organisation's ability to meet vision, mission, goals and objectives. This is a significant step towards building investor and stakeholder confidence and improving future performance. In this assignment, you will explore: • The key concepts of Integrated reporting within the context of Australian Companies • The challenges faced in advancing towards an integrated reporting framework To get you started: Research the Joint report by the ACCA and the Net Balance Foundation. Follow the link: http://static1.squarespace.com/static/52045752e4b0330b6437dade/t/52dcdccee4b0322091738f9b/1390206158712/ACCA_IntegratedReportingintheASX50.pdf Integrated reporting is still in its formative years. However, some high profile Australian companies have endeavoured to adopt integrated reporting in different formats. There is neither specific format such as the financial report nor guidelines like the GRI. However, the main principles that govern IR are the links between financial and non-financial performance. An integrated report aims to communicate this link to its various stakeholders with greater transparency in a format that is easily digested. Due to lack of guidelines the information presented by the high profile companies take various forms such as the financial reports, sustainability reports, websites, shareholder briefings and other forms of communication. What is expected? Listed below are a few high profile Australian companies listed in the stock exchange, which currently follow integrated reporting in some form: • AGL • Amcor • ANZ • BHP Billiton • Bluescope Steel • GPT • IAG • NAB • Newcrest • Oil Search • Orica • Origin • Rio Tinto • Santos • Telstra • Transurban • Wesfarmers • Westpac • Woodside Choose a company (There are 18 groups of students who will be submitting their assignments, therefore, companies will be allocated on a first come first serve basis) and provide examples of how the company has met the criteria for IR across the following four key concepts. PART A 1) Purpose, value and strategy Integrated reporting requires that the organisational strategy which guides company operations acknowledge and reflect that Environmental Social and Governance and financial performance are interdependent. 2) Risk Management Integrated reporting requires that that company strategy and management address risks that may impact on the realisation of the company vision. Risk management procedures ensure the company is responsive and proactive. 3) Measuring and Managing Performance Integrated reporting requires consistent and continuous monitoring of targets being achieved on most MATERIAL issues. The mutual dependency of financial and non-financial matters must be aligned and quantified. 4) Stakeholder engagement Integrated reporting requires company to encourage stakeholder engagement as it becomes an increasingly important business issue, which fosters opportunities for growth, innovation and building public trust. PART B Discuss the challenges faced by the organisation in fully adopting the integrated reporting framework. Where possible give examples of perceived difficulties in the company achieving compatibility with the principles of integrated reporting. Some of the impediments will relate to the Nature of the business environment, Size of the organisation, Competition, Environmental and social factors, Timing of events, Information management and many more. You must demonstrate that you have understood the principles of integrated reporting. Your relevant examples will be the guide to your appreciation of the purpose of integrated reporting. Remember non-financial performance leads to financial performance. FORMAT OF THE REPORT – 2000 words 1) Introduction of core concepts – Demonstrate your understanding of Integrated reporting not merely copying from website 2) Inform me why you chose that particular company – Your motivation 3) Succinct examples of how the company meets the criteria 4) Hi light deficiencies, room for improvement 5) Future challenges. 6) Conclusion 7) List of references (Please seek assistance for referencing for first timers) Introduction – Not more than 200 words Examples – Not more than 1000 words Deficiencies – Not more than 500 words Future challenges and conclusion 300 words Please check Other attached documents (1) Instructions for assignment writing (2) Marking guidelines for Integrated reporting assignment