Global

Details

  • Service: Audit
  • Type: Press release
  • Date: 9/12/2011

A milestone on the journey to Integrated Reporting 

KPMG believes that Integrated Reporting, which is the subject of a Discussion Paper released today by the International Integrated Reporting Committee (IIRC), provides a potential new source of competitive advantage for business in the search for capital at a reasonable cost.

KPMG’s paper, Integrated Reporting; Performance Insight Through Better Business Reporting, also published today, provides a practical introduction to Integrated Reporting, what it means for business executives, how the IIRC concepts may be applied and importantly, how to benefit from innovative reporting.


David Matthews, Partner in KPMG’s UK firm and a member of the IIRC’s working group, said: “Progressive companies should get actively involved in the discussion around Integrated Reporting.  It will not all be plain sailing – innovation never is, and is not for the uncommitted.  However, the prize for those that get it right is capital at a reasonable cost through a better relationship with investors and the capital markets.  It is in everyone’s best interests to make Integrated Reporting work.”


As Integrated Reporting develops, KPMG believes that companies willing to experiment and innovate have the most to gain.


Michael Bray, Partner for KPMG in Australia, said: “As access to finance tightens through challenging market conditions, many companies are re-evaluating the scope of their communications to the capital markets. Providing strategic and forward looking information about the performance and prospects of the company is a powerful way to convince the capital markets of the worthiness of investing in a company.”


The report finds that the potential benefits to businesses of integrated reporting exist on many levels, particularly for CFOs, as well as CEOs and Boards.


Wim Bartels, Partner for KPMG in the Netherlands, explaining the potential benefits to businesses of enhancing sustainability reporting, said: “The reality for companies is that environmental, social and governance issues are having an increasing impact on their ability to operate and generate profit. As part of its overall objectives, Integrated Reporting recognizes that shareholders have a valid interest in understanding how these issues are being managed because of the impact they have on the value and sustainability of the business.”


Providing insight into the recent experience of implementing Integrated Reporting in South Africa, KPMG Partner Mark Hoffman, said: “The experience of our firms’ clients to date has indicated that once they fully understand the underlying principles and objectives of Integrated Reporting, most see clear benefits in adopting it, often referring to the framework as ‘Business 101’.




KPMG’s paper, Integrated Reporting; Performance Insight Through Better Business Reporting, focuses on the challenge of providing better business reporting. In this first edition, we have aimed to provide you with some background on Integrated Reporting with a series of short articles by some of our firms’ specialists from around the world.

For further information contact:

Caroline Baldwin, KPMG International

31 62 224 2727

Mark Hamilton, KPMG UK

44 207 694 2687

About KPMG

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 150 countries and have 138,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.