ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders
Kestrel Logistics wants to adopt integrated reporting. The finance director proposes a separate sustainability booklet, prepared by the marketing team, listing charitable donations and awards, while the financial statements remain unchanged. Which feature of integrated reporting does this proposal most clearly fail to deliver?
The proposal fails to deliver a concise, connected account of how strategy, governance, performance and prospects create value over time across the capitals. A separate marketing booklet of donations and awards is disconnected from financial results and strategy, whereas integrated reporting depends on that connectivity of information.
- ADisclosure of the number of employees
- BA concise communication of how strategy, governance, performance and prospects lead to value creation over time across the capitalsCorrect
- CCompliance with local tax legislation
- DAudited reporting of every non-financial indicator
Explanation
Integrated reporting is built on connectivity of information: showing how strategy, governance, performance and outlook create value over the short, medium and long term using the capitals. A separate marketing-led booklet of donations and awards is disconnected from strategy and financial results. It need not require audit of every indicator, so that option is wrong.
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