ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders
Zentara plc, a listed mining group, wants its annual report to show how its strategy, governance, performance and prospects lead to value creation over the short, medium and long term. The board is told that an integrated report should differ from a conventional annual report mainly because it does which of the following?
An integrated report is a concise communication showing how an organisation's strategy, governance, performance and prospects create value over the short, medium and long term across the capitals. It supplements rather than replaces the financial statements and is principles-based rather than a compliance list.
- AIt replaces the statutory financial statements with a shorter narrative
- BIt is a concise communication focused on value creation across the capitals over timeCorrect
- CIt is prepared only for shareholders and lenders as providers of financial capital
- DIt is a detailed compliance document listing every legal disclosure requirement
Explanation
The <IR> Framework describes an integrated report as a concise communication about how strategy, governance, performance and prospects lead to value creation over time. It does not replace financial statements, and its primary audience is providers of financial capital but it benefits all stakeholders. It is principles-based, not a compliance checklist.
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