ACCA Strategic Professional · Strategic Business Reporting (International) · Analysis and interpretation of financial and non-financial information and measurement of performance
Dalton Group's sustainability report states that its 'carbon intensity fell 20%'. The calculation excludes emissions from a newly acquired subsidiary, which accounts for 30% of group output, but the exclusion is not disclosed. Under the Integrated Reporting Framework's guiding principles, which is the MOST relevant failing?
The main failing is reliability and completeness. The report omits emissions from a subsidiary representing 30% of output without disclosure, so the reported 20% fall is not balanced or free from material error. Connectivity, strategic focus and conciseness are not the principles chiefly breached.
- AReliability and completenessCorrect
- BConnectivity of information
- CStrategic focus and future orientation
- DConciseness
Explanation
The Framework requires a report to include all material matters, positive and negative, in a balanced way without material error. Silently excluding 30% of output undermines completeness and reliability. Connectivity and strategic focus concern linkages and direction, and conciseness is about avoiding unnecessary detail, so these are not the main failing here.
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