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How does the Integrated Report relate to other report forms?

Table 1—Comparisons of the purpose, audience and scope of various report forms

  Financial statements Management commentary Sustainability disclosures in accordance with IFRS S1 and IFRS S2 Integrated report Multi-stakeholder sustainability report
Purpose To provide financial information about a reporting entity’s assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management’s stewardship of the entity’s economic resources. To provide management’s insights into factors that have affected an entity’s financial performance and financial position, and factors that could affect the entity’s ability to create value and generate cash flows in the future. To provide information about an entity’s sustainability/climate-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity. To explain to providers of financial capital how an organisation  creates value over time. To communicate a company’s broader social and environmental impacts, strategies and goals that is useful to various stakeholders.
Audience Existing and potential investors, lenders and other creditors. Existing and potential investors, lenders and other creditors. Existing and potential investors, lenders and other creditors. Providers of financial capital. Various stakeholders (including investors).
Scope Information about the reporting entity’s assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management’s stewardship of the entity’s economic resources.

Areas of content:

(a) the entity’s business model—how the entity creates value and generates cash flows;

(b) management’s strategy for sustaining and developing that business model, including the opportunities management has chosen to pursue;

(c) the resources and relationships on which the business model and strategy depend, including resources not recognised as assets in the entity’s financial statements;

(d) risks that could disrupt the business model, strategy, resources or

relationships;

(e) factors and trends in the external environment that have affected or could affect the business model, strategy, resources, relationships or risks; and

(f) the entity’s financial performance and financial position—including how they have been affected or could be affected in the future by the matters discussed for the other areas of content.

 Material information on sustainability/climate-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term (entity’s prospects).

Content elements:

– organisational overview and external environment;

– governance;

– business model;

– risks and opportunities;

– strategy and resource allocation;

–  performance; and

– outlook.

 Major impacts on economic, environmental, social and governance performance.