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+ Drag picture to placeholder or click icon to add
Drag picture to placeholder or click icon to addJoining The Dots –an introduction to and trends in integrated reporting.Chair: Rebecca Gunn, Manager, Sustainability Reporting, BHP Billiton, Member GRI Stakeholder Council
Hwang Soo Chiat, Associate Professor, School of Accountancy, Singapore Management University Terence Jeyaretnam, Director, Net BalanceNick Ridehalgh, Partner, KPMG; Content Taskforce Member, IIRC Victoria Whitaker, Network Manager, Focal Point Australia, Global Reporting Initiative
+
What Accountants need to know about Integrated Reporting: An Asian Perspective
Photo credits: Getty Images
Dr Hwang Soo ChiatSingapore Management University
Wong Dan Chi (DC)Paia Consulting
+Study
What is this about?
Ongoing study Current results largely
based on SG. KR responses so far are from reporters which are similar to responses from SG reporters.
Survey opinions on Disclosure Valuation Standardisation Education
Who are the respondents?
Respondents: 46 professionals Key representatives from
Sustainability reporting. Management or Finance
64 students from Accounting & Business
+Current picture
0
100
200
300
400
500
No. of GRI reports in Asia
Source: GRI data-base, 20 Mar 12
Year of Publication
0 39 105 7
16
3137
5869
34
No. of GRI reports in SG & KR
Source: GRI database, 20 Mar 12
SGKo-rea
Year of Publication
33
410
Japan114, 28%
China; 115; 28%
Korea; 34; 8%
India27, 7%
Breakdown of GRI reports in 2011
+Results - DisclosureSummary: Non-financial reporting is important (87%) and useful (85%). The greatest perceived cost of reporting are direct costs required to gather information and prepare reports. Opinions differ regarding time taken to reap benefits.
Top reasons for disclosure:
78% Improved reputation/brand
74% Improved stakeholder communication and relationships
61% Identify areas for cost savings, reduced wastage
$80%
Direct costs
needed to obtain
information
$76%
Direct costs
needed to prepare report
$41%Costs to modify
accounting system
$65%
Cost of assurance
for accuracy
& relevance
$35%
Risks of bad
publicity if company
is transparen
t
1-3
3-5
5-7
7-10
>10
Never
24% 35% 33%
4% 2% 2%
Time taken to reap benefits
(in years)
+Results - ValuationSummary: Most believe that non-financial information should be valued both quantitatively and qualitatively. Most also believe that it is possible to draw links between financial and non-financial information.
78%thinks that non-financial information should be disclosed, it should be valued both quantitatively and qualitatively.
4%17%
78%
Quant, in financial terms only
Quant, in both fin & non-fin terms
74% strongly or moderately agrees that it is possible to draw links between financial and non-financial information.
74%
26%
Agree NeutralDisagree
+Results - StandardisationSummary: 76% strongly or moderately agrees that standardisation is necessary, with greater comparability cited as the main reason. There appears to be low level of sustainability reporting standards.
Top reasons against standardisation:
50% Standards tend to be biased towards beliefs of certain countries or industries, even with multiple stakeholder engagement approaches
36% Each country or different stock exchanges may have their own legislation requirements
ISO14
001
OHSAS1
8001 GRI
ISO26
000
ISAE3
000
AA1000
AS
AA1000
SES IR
Awareness of Standards
UsersMarginal difference btwn no. of people aware and no. of users
+Results - EducationSummary: Majority there is a need for accountants to receive education in non-financial reporting, particularly on valuation techniques and drawing linkages between non-financial and financial reporting.
90% says
“YES”: There is a need for accountants to receive formal education on non-financial reporting.
96% says
“YES”: There is a need for accountants to undertake short courses on non-financial reporting.
0%
70%
43%
58% 63%57%
Topics of interest
Regulatory and voluntary trends in non-financial reportingIntroduction to non-financial reporting frameworksValuation techniques of non-financial informationDrawing meaningful linkages between non-financial and financial information
+Moving forward: Preliminary recommendations Awareness raising (still at nascent stage) Promote trust in framework: GRI Ambassadors Leverage on authority: GRI with various levels of
check Value chain: For SMEs to adopt standard
Develop the results into full report for GRI conference, and conduct further research for other reports/academic papers
Talk to us if you’re interested to receive detailed results ([email protected]/[email protected])
What’s next