ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders
Maribel Retail's board wants its integrated report to show how a fall in its natural capital, caused by water scarcity at key suppliers, links to its strategy, risks, financial performance and outlook. Which <IR> guiding principle is mainly being applied?
The principle is connectivity of information. The <IR> Framework requires a holistic picture of how factors affecting value creation relate to each other, so linking a natural capital decline to strategy, risk, performance and outlook demonstrates this principle.
- AConnectivity of informationCorrect
- BConsistency and comparability
- CStakeholder relationships
- DConciseness
Explanation
Connectivity of information requires a holistic picture of the combination, interrelatedness and dependencies between factors affecting value creation, such as linking capitals, risks, strategy and performance. Stakeholder relationships concerns insight into stakeholder needs, which is not the focus here.
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