Guidance in South Africa
In March 2014, the IRC endorsed the International <IR> Framework, released by the International Integrated Reporting Council (IIRC) in December 2013, as guidance on good practice on how to prepare an integrated report.
The International <IR> Framework offers guiding principles for the preparation and presentation of an integrated report, as well as content elements of information that should be included. The Framework sets out 18 requirements that must be met in an integrated report that is in accordance with the Framework.
The IIRC has also released a guidance paper, Materiality in Integrated Reporting.
South African organisations should also refer to the principles and recommended practices of the King IV Report on Corporate Governance for South Africa 2016 (King IV) released in November 2016 by the Institute of Directors in Southern Africa (IoDSA). The 1st April 2017 is the effective date of King IV. The Report highlights the importance of integrated thinking, integrated reporting and value creation and uses the definitions contained in the International <IR> Framework.
South African institutional investors, and their service providers, should also be aware of CRISA, the Code for Responsible Investing in South Africa, released by the IoDSA on 19 July 2011. The Code’s principle 1, recommended practice 1 b, states that investors should assess the quality of a company’s integrated reporting and if integrated reporting is not applied due enquiry should be made on the reasons.
Since 2014, and following the finalisation of the International <IR> Framework, the IRC has released technical Information Papers and FAQs aimed at assisting the preparers and users of integrated reports in applying and understanding the International <IR> Framework. The Information Papers and FAQs are developed by the Working Group after research and analysis of South African integrated reports, and contain excerpts from reports as examples of format and connectivity.
Reporting on Performance
Reporting on Outcomes
Preparing an Integrated Report – A Starter’s Guide
The Octopus Model – how the integrated report can fit into an organisation’s corporate reporting structure.