IN­TE­GRA­TION AID

Business First - - NEWS -

Roger Sim­nett, Scientia pro­fes­sor of ac­count­ing at the Aus­tralian School of Busi­ness, and mem­ber of the IIRC’s tech­ni­cal task force, has con­ducted re­search into the im­por­tance of in­te­grated re­port­ing, which he says pro­vides a sig­nif­i­cant op­por­tu­nity for NFP com­pa­nies.

“De­mand for in­te­grated re­port­ing is com­ing from the pri­vate sec­tor, par­tic­u­larly large in­sti­tu­tional in­vestors such as pen­sion funds. The irony is that while in­te­grated re­port­ing will be a good thing for the pri­vate sec­tor, it will be a game chang­ing de­vel­op­ment for NFP com­pa­nies that have never been well catered for un­der the cur­rent re­port­ing model.

“When I am look­ing to as­sess the value of a so­cial busi­ness, I’m only marginally in­ter­ested in how much profit the com­pany made or how it made that profit. So­cial busi­nesses are not es­tab­lished to make a profit so to as­sess their value ac­cord­ing to a fi­nan­cial re­port­ing model is un­help­ful. In­te­grated re­port­ing al­lows fun­ders and sup­port­ers to mea­sure all as­pects of com­pany value such as strat­egy, man­age­ment, so­cial good and gov­er­nance.”

The re­search shows that the cur­rent reg­u­la­tory bur­den on the lim­ited re­sources of NFP com­pa­nies in Aus­tralia is sig­nif­i­cant and in need of stream­lin­ing and re­form.

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