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ACCA Strategic Professional · Advanced Performance Management · Sustainability

Norvale plc is preparing its first integrated report under the IFRS Foundation's Integrated Reporting Framework. The finance director says the report should be a concise communication about how the organisation's strategy, governance, performance and prospects lead to value creation over the short, medium and long term. Which statement best describes the primary purpose of an integrated report under this framework?

The primary purpose of an integrated report is to explain to providers of financial capital how the organisation creates, preserves or erodes value over time. It complements the financial statements and is not a replacement, a compliance filing or a marketing brochure.

  1. ATo explain to providers of financial capital how the organisation creates, preserves or erodes value over timeCorrect
  2. BTo replace the statutory financial statements with a single sustainability document
  3. CTo demonstrate compliance with environmental regulations to government agencies
  4. DTo provide employees and customers with a marketing summary of annual achievements

Explanation

The Integrated Reporting Framework states that the primary purpose of an integrated report is to explain to providers of financial capital how an organisation creates, preserves or erodes value over time. It supplements rather than replaces financial statements, and it is not a regulatory compliance or marketing document.

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