Australia

Details

  • Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards
  • Type: Press release
  • Date: 16/04/2013

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Media contacts
Journalists looking for comment on a particular subject or sector can contact KPMG's media team.

IR could enable capital markets to focus on long-term value 

16 April 2013 - KPMG has welcomed the publication today of the International Integrated Reporting Council’s (IIRC) Draft Integrated Reporting Framework as an important step on the journey towards better business reporting.

According to KPMG, Integrated Reporting provides an opportunity for companies to make their case for capital more effectively by focusing their reporting on their business story and value creation.


Alan Buckle, Deputy Chairman of KPMG International, said: "We applaud the work of the IIRC and urge regulators, investors and governments to actively drive for change for better business reporting which can help ensure future financial stability."


Whilst welcoming the Draft Framework as an important step in the evolution of corporate reporting, KPMG also called on the IIRC to address the many different interpretations of Integrated Reporting in the marketplace. KPMG said that it hoped the final version of the Framework would address any risk of misinterpretation to ensure reports stay focused on helping readers understand how the earnings potential of the business has been developed and protected. It said the test of success would be whether Integrated Reporting was able to provide investors with the information needed to make better judgements on businesses’ ability to generate returns over the long term.


Commenting on the immediate relevance of the Draft Framework, KPMG said that whilst the IIRC had focused on the production of an 'Integrated Report', it believed that companies would be most interested in Integrated Reporting as a means to improve their existing narrative reporting. KPMG said it believed the concept of building narrative reporting around an organisation's business model, and the resulting focus on how the business had been developed, would be particularly attractive to management teams looking to move their investor dialogue beyond short-term earnings.


Michael Bray, Leader, KPMG Australia’s Better Business Reporting Group, said: "Integrated Reporting provides an opportunity to re-align corporate reporting with investor decision-making. It is an opportunity to shift the reporting focus from short term financial performance to long term value creation."

 

Media enquiries

Kristin Silva

Head of Public Affairs

KPMG in Australia

+61 2 9335 8562, 0411 110 953

ksilva@kpmg.com.au

Avilyn Tan

Communications Manager

KPMG in Australia

+ 61 3 8626 0943, 0428 435 095

avilyntan@kpmg.com.au

 

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