What you need to know about consistency and comparability in integrated reporting

The <IR> Framework has seven guiding principles. The seventh and last guiding principle articulates the importance of presenting information in a manner that is consistent and comparable

What does this mean? 

The information in an integrated report should be presented in a manner that is consistent over time. This means that readers of the report should be able to follow the development of a particular issue or story as it evolves over time.

Information should also be presented in such a manner that is easily comparable between one company and another.  

While this sounds simple in theory, it can be fairly complicated in practice.

Remaining consistent within changing circumstances 

Listed companies operate in increasingly disruptive and stringent environments. This is compounded by the complexity of the ever-evolving regulatory environment. 

Organisations should:

– Approach integrated reporting as a holistic science

– Embrace investors and other stakeholders in their decision-making throughout the reporting cycle

– Ensure that material KPIs are consistently recorded, adapted and communicated in accordance with the six capitals capital

– Ensure that internal ratios are created, accepted and communicated to always tell a consistent story

Providers of financial capital and shareholders accept that change is inevitable. What matters is the quality of communication they receive and the medium used. They are less accepting of leadership teams who only communicate to them twice a year at a results presentation or via the integrated report.

Still not sure how to go about reporting consistently? Get in touch with Alchemy Creative Studios: info@alchemycs.co.za

This is the last article in a series of seven relating to the <IR> Framework guiding principles. Return to our blog to read more on these principles.