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ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders

Harlow Energy's draft integrated report lists many positive achievements but omits a regulatory investigation and a major customer loss that could significantly affect its prospects. The chair says the report should stay upbeat for investor confidence. Which <IR> guiding principle is most clearly breached?

Reliability and completeness is breached. The <IR> Framework requires an integrated report to include all material matters, both positive and negative, in a balanced way. Leaving out a regulatory investigation and a major customer loss to keep the tone upbeat makes the report unbalanced.

  1. AConnectivity of information
  2. BStrategic focus and future orientation
  3. CReliability and completenessCorrect
  4. DConsistency and comparability

Explanation

Reliability and completeness requires all material matters, positive and negative, to be included in a balanced way without material error. Omitting adverse matters breaches this principle. Connectivity concerns links between information, and comparability concerns consistency over time and with other entities.

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