Integrated Reporting

Integrated Reporting

Good reporting should enable the capital markets to better understand a company's strategy, align their models with business performance, and make efficient and forward looking investment and other key decisions. We explain the potential benefits of Integrated Reporting.


Senior Manager, Better Business Reporting

KPMG in the UK


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Integrated reporting diagram

There is growing recognition that the range of issues and opportunities affecting long term business value is much broader than can be reflected in a set of current year financial measures. Annual Reports need to reflect this if they are to support investors’ capital allocation decisions effectively.

Integrated Reporting provides a basis to address this by refocusing reporting around an organisation’s business model and operational priorities. The aim is to reflect the critical opportunities and challenges that affect the business – the same issues that management are dealing with on a daily basis within the organisation.

Although designed to support the preparation of dedicated Integrated Reports, this approach can be applied by any company preparing an Annual Report - and indeed to other elements of corporate reporting.

For executives frustrated by apparent investor short-termism, this is an opportunity to provide a more complete picture of value, how it’s shaped by current and future events, and explain what management is doing to create and preserve it. Ultimately this is about business making its case for capital in a more effective way – bridging the gap between management’s value creation story and investors’ assessment of business value and stewardship.

Introducing Integrated Reporting

Integrated reporting: Addressing the reporting gap (PDF 850 KB)

There is a gap between current corporate reporting and investor needs. We explain how some companies are filling this gap by applying Integrated Reporting principles in their narrative reporting to more effectively communicate their business story.

The business case for integrated reporting (PDF 1.9 MB)

Good reporting should enable the capital markets to better understand a company's strategy, align their models with business performance, and make efficient and forward looking investment and other key decisions. We explain the potential benefits of Integrated Reporting.

Introducing integrated reporting (PDF 939 KB)

A brief introduction to the principles and reporting content elements behind integrated reporting.

Active governance: The core of better business reporting (PDF 432 KB)

We explain why boards need to provide active governance, how Integrated Reporting helps, and the board’s vital role in driving the changes needed from the top down for Integrated Thinking to become embedded in the organization’s culture

Survey of Integrated Reports in Japan (PDF 2 MB)

Integrated Reporting is developing a high profile in Japan with over 140 companies identifying that they have issued an Integrated Report. This survey looks at the current state of business reporting in Japan as a foundation for corporate communication.

Better Business Reporting

Designing a better report

Narrative reporting content in Annual Reports / 10Ks – the ‘MD&A’ - is receiving growing focus from investors and regulators alike. Preparers are increasingly being asked to focus on the matters most relevant to the future of their business, rather than following a list of prescribed disclosures. The result is much greater emphasis on the business model and strategy as a basis for reporting. But building a report around your business strategy can be daunting without the comfort-blanket of a disclosure checklist. For those that succeed, the potential reward is a more concise report that is focused on the key drivers of business value – one that is better equipped to support an effective investor dialogue. We look at what makes a good report. Whilst we use the Integrated Reporting Framework as a reference point, our suggestions are relevant to other business-centric approaches to reporting such as the UK’s strategic report.

Delivering a better report

Delivering an effective narrative report can be a challenge. It requires a clear vision of what’s needed to tell the company’s story. Getting the right people involved behind a common objective for the report is essential. Successful teams typically combine an in-depth understanding of business operations and strategy with a strong reporting background, and an empathy for investor needs. Expect the journey to a better report to be evolutionary as non-financial reporting systems are developed to support the report. This type of information may be just as price-sensitive if not more so than the financials - a similar approach to quality is required. We look at how to develop your report to tell your business story, and how to put the process behind this to deliver lasting reporting benefits.

The case for better reporting

Business leaders are expressing frustration with investor short-termism. At the same time investors are expressing concern that management teams are trading long term business prospects for short earnings performance. Can better reporting play a role in supporting longer term decision making?

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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