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ACCA Strategic Professional · Strategic Business Reporting (International) · Analysis and interpretation of financial and non-financial information and measurement of performance

Which of the following best describes the primary purpose of an integrated report under the IFRS Foundation's Integrated Reporting 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 rather than replacing them, and it focuses on material matters, not every stakeholder impact.

  1. ATo explain to providers of financial capital how an organisation creates, preserves or erodes value over timeCorrect
  2. BTo replace the statutory financial statements prepared under IFRS Accounting Standards
  3. CTo demonstrate compliance with environmental legislation to regulators
  4. DTo report to all stakeholders on every social and environmental impact of the organisation

Explanation

The Framework states 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. The option about all stakeholders and every impact is wrong because the primary audience is providers of financial capital and content is limited to material matters.

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