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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Integrated Reporting Framework, Global Reporting Initiative Framework and Business Responsibility and Sustainability Reporting

Veda Textiles Ltd, a listed Indian company, prepares an integrated report. The CFO says the report should mainly help providers of financial capital understand how the company creates value over time. Which statement best reflects the primary purpose of an integrated report under the IIRC 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 is a concise communication that complements financial statements, rather than replacing them or covering only environmental matters.

  1. ATo explain to providers of financial capital how an organisation creates, preserves or erodes value over timeCorrect
  2. BTo replace the audited financial statements entirely
  3. CTo list every stakeholder complaint received during the year
  4. DTo report only the environmental impact of operations

Explanation

The IIRC Framework states that the primary purpose of an integrated report is to explain to providers of financial capital how an organisation creates value over time. It complements, not replaces, financial statements, and is not limited to environmental or complaint data.

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