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describe the emergence of integrated reporting and its implications for…

- - - - (IIRC) has issued a framework for integrated reporting (<IR>).
      - definition
        
        integrated reporting is defined as a ‘process founded on integrated thinking that results in a periodic integrated report by an organisation about value creation over time and related communications regarding aspects of value creation’ (IIRC 2017).
      - assurance?
        
        Within the framework, and at present, no assurance of integrated reports is required.
        
        To follow up on the assurance issues outstanding after the approval of the Framework, the IIRC released two discussion papers in July 2014 (IIRC, 2014a, b).
        
        This was an attempt by the IIRC to promote robust assurance, along with other mechanisms that build the credibility of integrated reports.
        
        Assurance is seen to play a vitally important role in ensuring that integrated reports are seen to be credible.
    - - Assurance is an essential component of developing relevant and reliable integrated reports.
      - challenges
        
        DIDITS
        • Diversity of subject matter information—as the content of integrated reports moves beyond exclusively financial information, the breadth of issues that assurance practitioners must be knowledgeable of, and comfortable with, expands. Auditors, with only financial accounting subject matter expertise, may have a deficiency in other subject matter information assured under an integrated report.
        • Stage of development of non-financial indicators—many environmental, social and governance indicators remain less established and accepted than financial indicators, and may suffer from limited availability of data.
        • Time-frame and prospective nature of the information—<IR> captures both retrospective and prospective information because of their usefulness to decision-makers. In addition, many social and environmental effects are measured over longer time frames. Forward-looking and long-term information is more difficult to assure.
        • Discursive nature of the information—much of the information disclosed will be qualitative in nature. Assurance techniques are less developed for qualitative disclosures. For example, how does an assurance practitioner determine if a qualitative disclosure is material, and on what basis do they determine that such disclosures may contain a material misstatement?
        • Intersection of a variety of regulations and guidance—assurance of integrated reporting may require assurance practitioners to be familiar with a range of mandatory and non-mandatory approaches to reporting on financial, environmental, social and governance issues, which may include the International Financial Reporting Standards (IFRS), ISAs, International Organization for Standardization (ISOs), the GRI, the Carbon Disclosure Project and others.
        
        As <IR> is relatively new and still evolving, assurance and other credibility-enhancing mechanisms on the integrated report will need to evolve alongside the reporting itself.
      - mechanisms
        
        a range of mechanisms to enhance credibility and trust
        
        assurance is one
        
        corporate governance, internal audit and internal control are others
        
        As <IR> is relatively new and still evolving, assurance and other credibility-enhancing mechanisms on the integrated report will need to evolve alongside the reporting itself.