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ACCA Applied Knowledge · Business and Technology · Sustainable business practices

Which statement about an integrated report prepared under the integrated reporting approach is correct?

An integrated report explains how an organisation's strategy, governance and performance create value over time, drawing on multiple capitals such as financial, human and natural capital. It complements financial statements rather than replacing them.

  1. AIt is a financial statement that replaces the statement of profit or loss
  2. BIt shows how strategy, governance and performance create value over time using several capitalsCorrect
  3. CIt reports only environmental data and excludes financial information
  4. DIt is a legal document that must be filed with tax authorities

Explanation

Integrated reporting explains how an organisation creates, preserves or erodes value over the short, medium and long term, using financial, manufactured, intellectual, human, social and relationship, and natural capitals. It complements rather than replaces financial statements and is not limited to environmental data.

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