1、PRINCIPLES OF GOOD CORPORATE REPORTINGCopyright November 2024 by the Association of Chartered Certified Accountants(ACCA).All rights reserved.Used with permission of ACCA.Contact for permission to reproduce,store or transmit,or to make other similar uses of this document.About ACCA We are ACCA(the A

2、ssociation of Chartered Certified Accountants),a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.Founded in 1904 to widen access to the accountancy profession,weve long championed inclusion and today proudly support a divers

3、e community of over 252,500 members and 526,000 future members in 180 countries.Our forward-looking qualifications,continuous learning and insights are respected and valued by employers in every sector.They equip individuals with the business and finance expertise and ethical judgement to create,pro

4、tect and report the sustainable value delivered by organisations and economies.Guided by our purpose and values,our vision is to develop the accountancy profession the world needs.Partnering with policymakers,standard-setters,the donor community,educators and other accountancy bodies,were strengthen

5、ing and building a profession that drives a sustainable future for all.Find out more at 2Corporate reporting is akin to a kaleidoscope.From one end of a tube,reflecting surfaces positioned at different angles show changing patterns as a base pattern is rotated.Similarly,within the limits of corporat

6、e reporting,information is viewed from the different angles of various stakeholder groups to form an understanding that facilitates each groups decision-making.With todays increasingly diverse audiences,corporate reporting is constantly evolving,resulting in a blend that is simultaneously familiar a

7、nd foreign.This research explores the characteristics and qualities of corporate reporting for general purposes that remain relevant throughout this constant change,while considering the impact of current developments on the reporting landscape.Corporate reporting comprises officially promoted and d

8、ocumented communications from organisations,whether electronic or paper-based,intended to provide a comprehensive picture of their performance and position to interested stakeholders.Reports are typically prepared using standards or frameworks that may be mandatory,to meet the legal requirements of

9、the jurisdictions in which the organisations operate.Today,corporate reporting is not limited to financial and sustainability-related reporting,and can extend to corporate law,corporate governance,tax legislation,etc.This report focuses on the narrative aspects of corporate reporting for general pur

10、poses,including but not restricted to an organisations general purpose financial statements and sustainability-related financial disclosures.Terms defined in the Glossary are in italics the first time they appear in this report.About this report3ContentsIntroduction 5 Reflecting on the evolving corp

11、orate reporting landscape 5 Achieving good corporate reporting 6 What this report seeks to achieve and for whom 81.Embed connectivity and coherence 92.Apply a building blocks approach,building on a global baseline 133.Be principles-based and apply proportionality 154.Maximise comparability,with inte

12、roperability as a catalyst 175.Understand and meet stakeholders information needs 196.Take a holistic approach to corporate reporting 217.Enable and support good governance practices 238.Ease access and avoid disclosure overload 26Glossary 29Acknowledgements 32Appendices 33Appendix A:Qualitative cha

13、racteristics of useful information in corporate reporting overview 33Appendix B:Qualities relating to corporate reporting generally overview 33References 34MethodologyThis report was developed using insights from multi-stakeholder groups and professionals with expertise and experience spanning corpo

14、rate reporting,analysing and using corporate reporting disclosures in decision-making,and in providing assurance(including reviews).We acknowledge and thank the individuals and ACCA Policy and Insights colleagues who participated in our global roundtables,workshops and interviews,sharing insights dr

15、awn from their individual areas of expertise.(See Acknowledgements)AuthorHsiao Mei Chow,Head of Corporate Reporting Insights Sustainability,ACCA4PRINCIPLES OF GOOD CORPORATE REPORTING|INTRODUCTIONIntroductionReflecting on the evolving corporate reporting landscapeCorporate reporting is not just abou

16、t disclosures,but about communicating how an organisation is operating and responding to changes in its external landscape.Organisations need to be able to explain risks and opportunities,and how they are going through transition,to be attractive to investors.A sustainability expertGrowing external

17、stakeholder pressure,with:na shift in focus from financial profits to risk and sustainability,resulting in organisations extra vigilance on what they choose to report nincreased calls for corporate reporting to extend beyond the investor focus,to meet the needs of wider stakeholders.Legislation nThe

18、re is much concern about how corporate reporting requirements are increasingly introduced through rule-based regulatory changes(eg through new or amended laws,directives,listing requirements),rather than principles-based standard-setting,contributing to greater fragmentation globally and an increase

19、d reporting burden.The corporate reporting landscape presents a continuously evolving multitude of frameworks,buzzwords,rules,etc,to keep pace with the dynamic business environment and rapid technological advancements,as well as changing ethical,societal and environmental considerations.Our research

20、 highlighted the following key drivers of change in corporate reporting over the past decade.Technological advancements,whereby:naccess to more information has contributed to greater transparency but also confusion through information overload ngreater use of social media has led to timelier dissemi

21、nation of information,but also rapid dissemination of misinformation nethical considerations are made more complex by evolving technologies such as artificial intelligence(AI)nthose charged with governance(eg boards)are paying more attention to organisations cybersecurity risks,but those organisatio

22、ns technology strategies may not be reflected in their corporate reporting disclosures.5PRINCIPLES OF GOOD CORPORATE REPORTING|INTRODUCTIONAchieving good corporate reportingThrough various stakeholder engagements,we found that the characteristics and qualities relating to corporate reporting set out

23、 in existing reporting frameworks are indeed robust and remain relevant amid the constant change.In fact,how these characteristics and qualities are embedded within todays ways of working continues to influence quality of reporting.At the same time,organisations need to bring together different piec

24、es of information to tell a connected and cohesive story.Figure I1 gathers the insights from our findings into four main themes,with connectivity and coherence being key in achieving decision-useful corporate reporting and cutting across the other three themes standards and frameworks,data and infor

25、mation,and communication.Together,these form the foundation for ACCAs eight principles of good corporate reporting(see Table I1).TABLE I1:Principles of good corporate reporting THEMESPRINCIPLES OF GOOD CORPORATE REPORTINGConnectivity and coherence a people-and process-driven exercise1.Embed connecti

26、vity and coherenceStandards and frameworks selection,adoption and implementation2.Apply a building blocks approach,building on a global baseline3.Be principles-based and apply proportionality4.Maximise comparability,with interoperability as a catalystData and information for whom,and to what extent5

27、.Understand and meet stakeholders information needs6.Take a holistic approach to corporate reporting7.Enable and support good governance practicesCommunication telling the organisations story8.Ease access and avoid disclosure overloadIt is not enough to just report for reportings sake.These principl

28、es of good corporate reporting must be embedded into an organisations reporting processes,people and technology to maximise and truly reap the benefits of reporting.The corporate reporting journey matters just as much as the outcome,and this goes on to influence decision-making.A synthesis of commen

29、ts from roundtable participants6PRINCIPLES OF GOOD CORPORATE REPORTING|INTRODUCTIONFIGURE I1:Foundational attributes of the principles of good corporate reportingNote:The qualitative characteristics of useful information,and the qualities relating to corporate reporting generally,are closely related

30、,and in practice,applying one or more will naturally lead to applying others.Nonetheless,there are instances when challenges or tensions may arise,and this is where maintaining a reasonable balance between the various characteristics and qualities is key to good corporate reporting.Summarised overvi

31、ews of the characteristics and qualities are available in Appendix A and Appendix B respectively.Source:Adapted from IFRS Foundation 2023,IASB Conceptual Framework for Financial Reporting(IASB 2018),Integrated Reporting Framework(IFRS 2021a)and IFRS S1(ISSB 2023a).Other corporate reports (broader st

32、akeholder focus)Sustainability-related financial disclosuresGRIJurisdictional initiativesISSBJurisdictional initiativesFinancial statementsIASBOther GAAPManagement CommentaryIntegrated ReportingGeneral purpose financial report(investor focus)Connectivity and coherenceQualitative characteristics of u

33、seful informationFundamental characteristicsEnhancing characteristicsRelevanceVerifiabilityFaithful representationMaterialityCompletenessNeutralityAccuracyTimelinessComparabilityUnderstandabilityQualities applicable to corporate reporting generallyEntity-specificityBalanceFuture orientationStrategic

34、 focusConcisenessStandards and frameworksCommunicationData and information7Specific considerations for corporate reporters*Specific considerations for policymakers,standard-setters and regulatorsPRINCIPLES OF GOOD CORPORATE REPORTING|INTRODUCTIONWhat this report seeks to achieve and for whomOver the

35、 next sections,we explore the various principles and areas for specific consideration by key participants in corporate reporting,while considering how these interact and support policymaking,standard-setting and decision-making,as well as the challenges and tensions that may arise during their appli

36、cation.Important recurring themes have also been embedded across the principles,such as balancing the costs and benefits of reporting,and considering the impact of technology and innovation.This report thus aims to support:npolicymakers(including standard-setters and regulators),in shaping,developin

37、g and maintaining policies,standards and regulations relating to corporate reporting that are fit for purpose,connected and coherent norganisations,in communicating high-quality,decision-useful information to their stakeholders in a way that reflects the connections between their business models and

38、 strategies and the way they operate and create value over time(see Box I1)nsenior management and professional accountants,in gaining a better understanding of the continued relevance of the principles of corporate reporting and their adaptation for application in todays constantly evolving landscap

39、e.Box I1:Empowering better decision-makingAs an essential communication tool,corporate reporting enables an organisations stakeholders to make informed decisions,often playing key roles in:nidentifying risks and opportunities,with the dual benefit of guiding an organisations direction while also fee

40、ding back into the organisations operations and guiding continual improvement naccessing equity,debt and trade finance,by providing insight into an organisations credibility and how it operates and creates value over time;for larger organisations,particularly listed ones,such insight may even influe

41、nce share price ncontracting with customers and suppliers,who may wish to assess the financial feasibility of doing business with an organisation,and whether the organisations strategy and principles align with their own,and nattracting and retaining employees,as an indication of an organisations at

42、titude,commitment,approach to and impact on society and the natural environment.To help you navigate this report,look out for these colours or icons as a way of easily identifying sections most relevant to your needs:*Organisations,senior management,professional accountants,and other individuals inv

43、olved in the corporate reporting process within an organisation(referred to collectively as corporate reporters).Applying the foundational attributes to the principles of good corporate reporting(see Figure I1)Considerations relating to balancing the costs and benefits of reporting Considerations re

44、lating to technology and innovation 8PRINCIPLES OF GOOD CORPORATE REPORTING|1.EMBED CONNECTIVITY AND COHERENCE1.Embed connectivity and coherenceand consistent information enables users of general purpose corporate reports to understand the connections between various types of information,and how the

45、se connect to different aspects of business activity governance,strategy,risk management and assessing progress supporting users understanding of organisations resilience and ability to thrive.For this reason,and reflecting how these interconnect with other characteristics and qualities of corporate

46、 reporting,Figure I1 depicts connectivity and coherence as spanning across the other three themes of good corporate reporting.ACCAs Making Information Connections for Sustainable Value Creation(Machado 2024)further explores various aspects of connectivity and its importance,and gives examples of its

47、 application in practice.Given current growing information needs,connectivity is top consideration in multiple standard-setting and reporting circles(EFRAG 2024:para 6),as part of efforts to address information overload.ACCAs research(Baboukardis et al.2022)into climate-related disclosures indicates

48、 that information overload is partly due to scattering and duplication of disclosures with little to no cross-referencing,leading to reports that hinder transparency and comparability,as readers spend considerable time and effort looking for the information they need.Various stakeholders broadly ack

49、nowledge that connectivity is crucial to achieving coherence in reporting,and is paramount for more resilient capital markets,better long-term decision-making and sustainable value creation.In particular,coherent Box 1.1:Connectivity and coherence is a people-and process-driven exerciseConnectivity

50、and coherence mean more than just reporting outcomes or putting different pieces of information together.Rather,this is a people-and process-driven exercise of widespread impact which needs to have the characteristics shown below.Main theme:Connectivity and coherenceConnected to:Comparability,entity

51、-specificity,future orientation,strategic focusBEGINat the global standard-and framework-setting stageEXTEND THROUGH regional and jurisdictional policy and regulatory developmentBE EMBEDDED INTO each individual organisations strategy and operationsBE REFLECTED IN EACH ORGANISATIONS VARIOUS INTERNAL

52、AND EXTERNAL COMMUNICATIONS to facilitate stakeholders decision-making,whether through corporate reports or wider channels such as webpages,social media,marketing collaterals 9PRINCIPLES OF GOOD CORPORATE REPORTING|1.EMBED CONNECTIVITY AND COHERENCE1.1 Specific considerations for policymakers,standa

53、rd-setters and regulatorsGlobal policymakers and standard-setters have an essential role in setting the tone from the beginning for an overarching emphasis on connectivity and coherence in the process.Embedding and reflecting these considerations in their policymaking and standard-setting processes

54、can help maximise compatibility while minimising gaps and overlaps in concepts and policies,so easing implementation.For example,the IFRS Foundation embeds connectivity in its processes and products,with the aim of contributing towards holistic,comprehensive and coherent general purpose financial re

55、ports(IFRS Foundation 2023).Care is needed to ensure that policymaking and standard-setting drive connectivity and coherence in reporting not only between different sustainability-related topics but also between sustainability-related information and information provided within and across an organis

56、ations different means of communication.These can include general purpose financial statements,management reports,annual reports,integrated reports,or websites.To support these,ACCA believes that it is important to develop an overarching conceptual framework for corporate reporting that incorporates

57、 and builds on the principles of the Integrated Reporting Framework.This will be essential in guiding future work on connectivity and coherence:it will provide more consistent guidance in addressing interconnected topics,clarify the scope and boundaries across different areas in reporting,and improv

58、e collaborative work in standard-setting by the International Accounting Standards Board(IASB),International Sustainability Standards Board(ISSB),and other similar bodies at regional and jurisdictional levels.Click here to watch a series of short videos on how the ISSB supports better connectivity.A

59、t regional and jurisdictional levels,corporate reporting requirements adopted for local use should align as far as possible with respective public policy objectives and strategic needs.For example,in developing a phased implementation roadmap for sustainability reporting,the jurisdiction may wish to

60、 consider whether certain industries selected for earlier implementation align with its commitments to reducing greenhouse gas(GHG)emissions,against the backdrop of other strategic plans,the markets state of readiness,and the overall resource availability.Also,as far as possible,policymakers,standar

61、d-setters and regulators at all levels need to collaborate and connect the different elements that contribute to high-quality corporate reporting.Connectivity needs to extend beyond reporting to consider the interconnected implications with other key areas such as ethics,audit and assurance,and tax,

62、to facilitate coherence across the different machineries of policymaking,adoption and implementation.10PRINCIPLES OF GOOD CORPORATE REPORTING|1.EMBED CONNECTIVITY AND COHERENCEEvery organisation,regardless of size and complexity,needs to comply with a combination of jurisdiction-and industry-specifi

63、c disclosure requirements,which can differ in complexity depending on where and how the organisation operates.These can include non-mandatory reporting frameworks.An organisations selection and application of relevant reporting frameworks should align with and complement its strategic vision and dir

64、ection.Stage 2 of ACCAs Sustainability Reporting The Guide to Preparation(Machado,Saw and Chow 2023)explores how this applies in practice.As corporate reporting is a direct reflection of an organisations business activities,connectivity and coherence need to be embedded within and across organisatio

65、ns business activities,abandoning siloed practices of isolated information preparation and decision-making and an overly compliance-centric mindset.To reap the full benefits of corporate reporting,collaboration across the organisation is key,with widespread application of integrated thinking(Chen an

66、d Hawksley 2021)across the organisation complemented by integrative thinking(Machado,Chen et al.2023)by individuals.In separate research,we further explore how organisations apply connectivity in practice to catalyse quality decision-making and sustainable value creation(Machado 2024).For informatio

67、n to be coherent,it must explain the organisations risks and opportunities in a way that connects its financial and non-financial information to its wider strategy and governance,while addressing how it plans to become more equitable and sustainable,to be attractive to investors.This involves,but is

68、 not limited to,providing the necessary context,explanations and cross-references,and using consistent data,assumptions and units of measurement1(see Box 1.2).Where possible,information reported internally for decision-making should be consistent with information reported externally for stakeholders

69、.Organisations should align data collection to meet both reporting needs at the same time,so as to maximise the usefulness of the data collected,optimise operational efficiency through economies of scale,and so minimise their reporting burden.Close alignment between organisations strategies and repo

70、rting will help solidify overall appreciation of the former,leading to better connectivity and coherence(Machado,Saw and Chow 2023:s.5.2).Organisations should also clearly demonstrate how the interaction of various resources and capitals has led to sustainable value creation and how the organisation

71、 intends to create more value in the future in its disclosures on past performance,current position and future prospects.For example,applying the Integrated Reporting Framework,disclosures should show the linkages and relationships between the six capitals:financial,manufactured,intellectual,human,s

72、ocial and relationship,and natural (IFRS Foundation 2021a).There needs to be a level of mastery before you can start thinking of connectivity.The challenge will be with moving on to holistic,integrated thinking of financial and non-financial information,and trying to make sense of it.Think about IFR

73、S Accounting Standards over the years upskilling,coming up to speed,then spreading that expertise across organisations.A lot of handholding will be needed across the years to get to the point where we can really think about the big picture.A sustainability consultantAchieving connectivity and cohere

74、nce needs a certain level of mastery,in-depth understanding and appreciation of how different parts of the organisation interconnect and influence each others performance.Hence,organisations should carefully consider the resources and skills needed for continual improvement.Stage 7.3 of ACCAs Sustai

75、nability Reporting The Guide to Preparation(Machado,Saw and Chow 2023)highlights that,for many organisations,this will require investment in people,whether for developing new capabilities,improving team operations or changing the organisational structure.1 IFRS S1,paragraph B42(ISSB 2023a).Currently

76、,different departments look after different parts of corporate reporting.But there isnt really a person or department that monitors and thinks about connectivity.For example,in a listed organisation,ESG environmental,social and governance information might be managed by the investor relations,corpor

77、ate communications or legal department,and their focus is different building a positive image or reputation,compliance,etc.The front part of the annual report says a lot of great things about the organisations ESG practices,but this is not reflected in the financial statements.What do the actions on

78、 climate-related matters or transition plan mean for the business?How much would the organisation like to invest?Does this mean that the organisation will retire any property,plant and equipment?An ESG reporting and assurance expert1.2 Specific considerations for corporate reporters11PRINCIPLES OF G

79、OOD CORPORATE REPORTING|1.EMBED CONNECTIVITY AND COHERENCEBox 1.2:An example of connected information based on the IFRS Sustainability Disclosure StandardsIn providing connected information about the use of evolving technologies(such as AI)in operations,an organisation might explain:nhow its busines

80、s model,strategy and operations may change in the short,medium and long term,and how this will affect key assumptions and sensitivities that will feed into forecasts,budgeting and future cashflows nhow its policies might change to take new and evolving risks and opportunities into consideration(eg d

81、ata governance,cybersecurity,data privacy)nhow the organisations use of natural resources will change(eg relating to electricity,water),and how this will amplify or reduce its sustainability-related risks and opportunities(SRROs)nhow this might affect its human capital management(eg hiring,upskillin

82、g,termination),and how this links to information in the financial statements nwhether it might need to impair or retire certain existing assets and/or invest in new assets,and how this will impact its financial position and financial performance over time nwhat new and revised targets have been set

83、and metrics needed to assess progress against them,and how these link to information in the financial statements.In addition,where oversight of SRROs is managed on an integrated basis,the organisation should avoid duplication by providing integrated risk management disclosures instead of separate di

84、sclosures for each SRRO.22 IFRS S2,paragraph 26(ISSB 2023b).12PRINCIPLES OF GOOD CORPORATE REPORTING|2.APPLY A BUILDING BLOCKS APPROACH,BUILDING ON A GLOBAL BASELINE2.Apply a building blocks approach,building on a global baselineie the IFRS Accounting Standards through the IASB,and more recently,the

85、 IFRS Sustainability Disclosure Standards3 through the ISSB.Their collective strength,experience and expertise are key enablers in connecting financial,sustainability-related and other information,with the eventual goal of achieving integration in reporting.ACCA has long advocated a global approach

86、to the development and application of principles-based reporting standards,supported by a robust due process and an inclusive approach that considers regional and economic differences.We strongly support the IFRS Foundations ongoing efforts to develop and maintain global standards,Box 2.1:Why use gl

87、obal standards?Global standards provide a high-quality comprehensive baseline for corporate reporting.Using a single set of standards is more efficient than accommodating a variety of different and potentially conflicting requirements.Consistency in treatments and disclosures can give users informat

88、ion that:3 The IFRS Sustainability Disclosure Standards build on the Climate Disclosure Standards Board(CDSB)framework,the Task Force on Climate-related Finance Disclosures(TCFD)recommendations,the Integrated Reporting Framework and the industry-based Sustainability Accounting Standards Board(SASB)S

89、tandards.Main theme:Standards and frameworksConnected to:Relevance,comparability,understandability,timeliness is relevant and reliable for decision-makingreduces uncertainty and improves their understanding of the organisations business model,strategies and performanceenables greater comparability o

90、f performance within and among reporting organisations13PRINCIPLES OF GOOD CORPORATE REPORTING|2.APPLY A BUILDING BLOCKS APPROACH,BUILDING ON A GLOBAL BASELINEJurisdictions should adopt and build on a global baseline,ie the IFRS Accounting Standards and IFRS Sustainability Disclosure Standards,layer

91、ing sustainability-related and other disclosures with financial disclosures.Jurisdiction-specific reporting frameworks need to be pragmatic to meet region-specific needs of regulators,investors and other key stakeholders,supporting interoperability and equivalence to maximise global consistency and

92、comparability.The timeliness of information needs to be balanced with resources available to corporate reporters in providing it.For new reporting requirements,an implementation roadmap will clarify regulatory expectations.A phased implementation that reflects the size and/or complexity of organisat

93、ions and resource availability,along with implementation guidance,can support consistent implementation.FIGURE 2.1:The building blocks approachFigure 2.1 applies the building blocks approach from a global corporate reporting frameworks perspective,and reflects how corporate reporting has evolved bey

94、ond the financial statements,with sustainability reporting becoming a prominent feature.This approach can be similarly applied by other key participants in corporate reporting.nPolicymakers,standard-setters,and regulators can layer multiple applicable frameworks and requirements across industries an

95、d sectors to help identify,analyse,understand and monitor potential adoption and implementation challenges that their constituents might face in different jurisdictions and regions.This will help develop and enhance policies and regulations that are fit for purpose,as well as in structuring pragmati

96、c implementation roadmaps appropriate to their regulatory and corporate reporting landscape,their market readiness and the information needs of wider stakeholders.nOrganisations,particularly those operating across more than one jurisdiction or region,may find this approach useful in identifying and

97、implementing relevant mandatory reporting requirements,and in understanding how and to what extent these will interact with or complement any additional non-mandatory reporting frameworks that they wish to adopt.This can also be a basis for developing an implementation timeline,including planning ah

98、ead for capacity building.ACCAs Sustainability Reporting The Guide to Preparation(Machado,Saw and Chow 2023)demonstrates how the building blocks approach is applied in Stage 2,and provides helpful guidance on preparing an organisations process,people and technology to implement sustainability report

99、ing.Source:Adapted from IFRS Foundation 20232.1 Specific considerations for policymakers,standard-setters and regulatorsOther corporate reports (broader stakeholder focus)Sustainability-related financial disclosuresGRIJurisdictional initiativesIFRS Sustainability Disclosure StandardsJurisdictional i

100、nitiativesFinancial statementsManagement CommentaryIntegrated ReportingGeneral purpose financial report(investor focus)IFRS Accounting StandardsOther GAAP14PRINCIPLES OF GOOD CORPORATE REPORTING|3.BE PRINCIPLES-BASED AND APPLY PROPORTIONALITY3.Be principles-based and apply proportionalityGlobal stan

101、dards and frameworks need to:nbe principles-based and developed with proportionality in mind to allow for some flexibility in their requirements,to meet the unique needs and circumstances of various organisations and their stakeholders in various jurisdictions nconsider the impact of scientific and

102、technological innovations,which may lead to new business models(ACCACA ANZ 2024),for example those being proposed for road infrastructure repairs(Cao 2024)nincorporate a multi-capital approach,focusing on factors that influence organisations ability to create value over time,to encourage better appr

103、eciation of how organisations strategies are reflected in corporate reporting nbe sufficiently comprehensive and complete to minimise divergent region-or jurisdiction-specific reporting requirements nbe supplemented with helpful guidance and illustrative examples to clarify how the principles apply

104、to the particular facts and circumstances.Main theme:Standards and frameworksConnected to:Comparability15PRINCIPLES OF GOOD CORPORATE REPORTING|3.BE PRINCIPLES-BASED AND APPLY PROPORTIONALITYA pragmatic approach will encourage wider adoption among jurisdictions,enabling these standards and framework

105、s to be used not only by listed organisations,but also by SMEs(small and medium-sized or lesser-resourced entities)and not-for-profits.However,care is needed to ensure standards or frameworks complement rather than dictate or contradict policies,at all levels.Jurisdictional targets and requirements

106、for transition plans are likely to evolve or differ considerably between jurisdictions,and an organisation may alter its targets,for example to accommodate climate change strategy alongside other sustainability-related risks and opportunities for a just transition.Given the likely increase in sustai

107、nability-related information requests for value chain purposes,developing a voluntary,simplified and reduced reporting standard alongside existing reporting requirements may help.While all organisations(including SMEs)stand to benefit from embracing wider connected corporate reporting(eg seizing new

108、 opportunities,pre-empting risks),the burden of preparation may be particularly onerous for micro and small organisations,and benefits may not justify the cost if this is an obligatory requirement.Ultimately,reporting is only one policy lever for promoting more responsible business decision-making a

109、nd driving positive change for people and planet.Other policies encouraging sustainable business models include provision of sustainable finance,good corporate governance,appropriate taxation and regulation.A proportionate approach to mandatory reporting requirements can ensure that business resourc

110、es are directed towards actively pursuing a green and just transition.Regional and jurisdictional standard-setters may mandate specific disclosure requirements and metrics.We call on jurisdictions around the world to cooperate multilaterally,with oversight by global organisations such as the Interna

111、tional Organization of Securities Commissions(IOSCO)and Organisation for Economic Co-operation and Development(OECD),to ensure that regions and jurisdictions adopt a common set of mandatory metrics relating to each given topic.Such metrics should allow for different maturity levels,be scoped and def

112、ined in precise terms to ensure comparability,and targeted and limited in number,to ensure ease of use by investors and other stakeholders.In addition,separating the mandatory(must-have)from voluntary(good-to-have)disclosures within the standards will ease and encourage adoption by jurisdictional re

113、gulators and/or standard-setters(ACCACA ANZ 2024).This will minimise the need for jurisdictional modifications to the standards and aid proportionality and scalability of the standards.Applicability to a wider range of organisations will increase voluntary adoption of the standards.Organisations sho

114、uld be allowed to determine which information will be material for their stakeholders,with guidance provided to help make this determination.Further,it is important to weigh the decision-usefulness of information to the intended audience against the effort required to report it.Smaller,lesser-resour

115、ced organisations are particularly likely either to have to produce their own full report to meet reporting requirements,or to provide information to customers or suppliers within the value chain.This can inadvertently impair their ability to trade with larger organisations requesting such informati

116、on(ACCACA ANZ 2024).3.1 Specific considerations for policymakers,standard-setters and regulators3.2 Specific considerations for corporate reportersOrganisations should apply the principles and requirements of the standards and frameworks according to their own needs and circumstances.Where appropria

117、te,consider the cost and effort involved in gathering and reporting the information versus the benefits of the resulting information for users.Also,a multi-capital approach would help focus on factors that influence the organisations ability to create value over the short,medium and long term.16PRIN

118、CIPLES OF GOOD CORPORATE REPORTING|4.MAXIMISE COMPARABILITY,WITH INTEROPERABILITY AS A CATALYST4.Maximise comparability,with interoperability as a catalystACCA commends and welcomes the IFRS Foundations efforts to collaborate with policymakers,standard-setters and regulators across global,regional a

119、nd individual jurisdiction levels to develop interoperable standards and frameworks.These drive more comparable reporting while minimising duplication of effort by those corporate reporters who need to report under multiple reporting regimes.Nonetheless,interoperability is just a means of pursuing a

120、nd maintaining convergence over time,where requirements are fully or largely identical(IFRS Foundation 2021b).Further collaboration is needed to align common disclosures and use the same wording and terminology across global,regional and jurisdictional reporting requirements,such that reporting orga

121、nisations will eventually need to prepare only one set of disclosures.This will ensure consistent and common understanding of key terms and requirements and consistent application of the latter.Examples of terms include sustainability,materiality,connectivity and interoperability.Main theme:Standard

122、s and frameworksConnected to:Comparability,understandability17PRINCIPLES OF GOOD CORPORATE REPORTING|4.MAXIMISE COMPARABILITY,WITH INTEROPERABILITY AS A CATALYSTBox 4.1:Applying interoperable standards and frameworksMuch attention has been given to achieving interoperability among different framewor

123、ks,but our engagement with stakeholders revealed that this can,sometimes,be confusing,for interoperability does not mean equivalence.Organisations will still need to identify and understand the impact of gaps and/or overlaps,however minimal,between different standards,frameworks and regulations on t

124、heir activities to reflect this in reporting.Hence,while duplication of effort might be reduced,this may not mean a reduced reporting burden.For example,the IFRS Sustainability Disclosure Standards and European Sustainability Reporting Standards(ESRS)have a high degree of alignment on climate-relate

125、d reporting,with almost all of the climate-related disclosures in the IFRS Sustainability Disclosure Standards being included in the ESRS.As a result,an aligned outcome is expected(ESRS and ISSB n.d.)whereby an organisation:napplying the IFRS Sustainability Disclosure Standards will be able to ident

126、ify climate-related disclosures considered to be financially material in accordance with ESRS,and napplying the ESRS may use the outcome of its assessment of financial materiality to identify disclosures considered material in accordance with the IFRS Sustainability Disclosure Standards.Despite this

127、,the organisation would need to prepare additional disclosures beyond those required by the IFRS Sustainability Disclosure Standards,to meet the requirements of the ESRS,and vice versa.The necessary incremental work means that affected organisations will still need to allocate resources and time to

128、build familiarity through awareness,education and experience in application.Region-and jurisdiction-specific standards and frameworks should be substantially consistent with global standards,subject to the constraints of the needs of different users and the cost and benefits of preparation by organi

129、sations other than listed organisations.Given cultural diversity and different levels of maturity between markets,jurisdictional modifications are sometimes necessary,eg as a stepping stone towards achieving full adoption of a global reporting framework.Care is needed to minimise jurisdictional modi

130、fications to ensure that these do not become a compliance-centric exercise requiring multiple reconciliations to restore global comparability.Jurisdictional modifications can result in further fragmentation,risking inter-jurisdictional diversity in practice,reducing global comparability and resultin

131、g in increased reporting burdens.This can also distract focus and resources from an organisations core role of value creation.The cost of providing such information may well exceed its benefits.(See also 5.Understand and meet stakeholders information needs.)Ultimately,the effects of adhering to glob

132、al standards will be most evident when combined with other factors and incentives encouraging good reporting,such as measures for ensuring investor protection,good corporate governance and independent audit and assurance.The IFRS Foundations The Jurisdictional Journey towards Globally Comparable Inf

133、ormation for Capital Markets:Inaugural Jurisdictional Guide for the Adoption or other Use of ISSB Standards provides helpful insights for designing and planning journeys to adoption or other use of the IFRS Sustainability Disclosure Standards(IFRS Foundation 2024a).4.1 Specific considerations for po

134、licymakers,standard-setters and regulators4.2 Specific considerations for corporate reportersOrganisations should report information in a way that enables comparisons to be made at various levels:within the organisation,against other organisations within and across industries and sectors,and between

135、 different reporting periods.Where possible,collaborate with other organisations and industry associations to identify and align industry-or sector-specific metrics,policies,approaches and methodologies.Such comparability facilitates understanding of trends,and can influence decisions both internall

136、y and externally.This will in turn allow for more efficient and effective allocation of capital and improved business operations.Comparability of information is closely linked with many of the principles of good corporate reporting and can be improved by ensuring that information reported internally

137、 for decision-making is consistent with information reported externally for stakeholders.Care is needed,however,to avoid the use of boilerplate disclosures.(See 1.Embed connectivity and coherence and 8.Ease access and avoid disclosure overload)18PRINCIPLES OF GOOD CORPORATE REPORTING|5.UNDERSTAND AN

138、D MEET STAKEHOLDERS INFORMATION NEEDS5.Understand and meet stakeholders information needs nsuppliers and creditors are increasingly requesting information along their value chains to assess whether the policies and values of the organisations with which they are working or intend to work are aligned

139、 with their own.Some of these requests are enshrined in the organisations procurement policies,with some also being incorporated within service-level agreements and contracts.Recent developments and growing awareness of organisations symbiotic relationship with society and environment have also spur

140、red discussions globally on whether corporate reporting should continue to cater substantially to investors,and to what extent such reporting will be able to cater to the respective needs of increasingly diverse stakeholders(ie other users).A further important distinction is that certain users may b

141、e able to request(eg institutional investors,journalists,non-governmental organisations)or require(eg regulators,tax authorities)an organisation to provide information directly to them,beyond what is readily and publicly available.Bring your stakeholders along your thinking journey,help them to see

142、why you are a good organisation.A corporate reporting expert Corporate reporting requirements need to balance and prioritise reporting information that is relevant and decision-useful.In practice,this means useful,firstly,to primary users making decisions about providing resources to the organisatio

143、n,and then to satisfy other stakeholders needs.Investors,lenders and other creditors have long been identified as the primary users of financial reporting(IASB 2018),so frameworks,standards and regulations have concentrated on fulfilling their needs.While financial information remains central for ma

144、ny primary users,interest is widening to include non-financial information such as the impact of ESG factors on value creation and risk mitigation(ACCA and CFA 2019).For example:na United Nations(UN)-supported investor-led initiative developed six Principles of Responsible Investment to reflect the

145、increasing relevance of ESG issues to investment practices;implementing these principles contributes to developing a more sustainable global financial system(UN PRI n.d.)Main theme:Data and informationConnected to:Relevance(materiality),faithful representation(completeness),comparability,balance 19P

146、RINCIPLES OF GOOD CORPORATE REPORTING|5.UNDERSTAND AND MEET STAKEHOLDERS INFORMATION NEEDSBox 5.1:Understanding stakeholders evolving information needs Recognising that stakeholders information needs are evolving,corporate reporting must also evolve in tandem to ensure its continued relevance and de

147、cision-usefulness.It is thus important that all those involved in corporate reporting,from policymakers,standard-setters and regulators to corporate reporters develop an in-depth understanding of those needs by working through the questions below.Before introducing additional corporate reporting req

148、uirements,policymakers,standards-setters and regulators should engage with various stakeholder groups to understand the information they seek and how they intend to use it.It is particularly important to distinguish information that is truly relevant and essential for decision-making from informatio

149、n that is nice-to-have but lacks clear useful purposes.Care is needed to determine the appropriate level of granularity for information used in reporting.Certain granular information may serve only niche groups of users,while being potentially beyond the needs of the majority of primary users of gen

150、eral purpose financial reports.In such situations,the level of granularity might more appropriately be determined based on the respective organisations materiality assessments.For smaller,lesser-resourced organisations,balance and proportionality are needed to ensure that corporate reporting require

151、ments do not become onerous.5.1 Specific considerations for policymakers,standard-setters and regulators5.2 Specific considerations for corporate reportersCorporate reporting necessitates finding common ground to meet the maximum possible common information needs of stakeholders without inundating t

152、he user with so much information that what is truly important is obscured.Corporate reporting should focus on relevant and material information that enables appropriate decision-making.Just as each organisation is unique,so too are the information needs of its stakeholders.Different corporate report

153、s may be intended for different user groups.As a result,what constitutes relevant,material and complete information may vary between organisations and their reports.Organisations should engage with identified stakeholders and work through the questions listed in Box 5.1 to understand their respectiv

154、e information needs.This can then guide each organisations actions towards meeting those needs.Stage 4 of ACCAs Sustainability Reporting The Guide to Preparation walks through this process in detail(Machado,Saw and Chow 2023).Box 5.2:Possible challenges in applicationTensions may arise among:relevan

155、ce(materiality),faithful representation(completeness,accuracy),comparability,understandability,and concisenessLack of prioritisation in reporting can result in costs exceeding the benefits of providing granular information,as already-limited resources might be exhausted to focus on reporting as if i

156、t were the organisations main activity,rather than on the core activities actually being reported on.This also increases the risk of information overload both internally and externally,leading to poor-quality decision-making(Hinks 2022).WHO is the target audience for the information to be conveyed?W

157、HAT information are they interested in?WHY do they need this information,and how will they use it?WHAT specific data is needed to produce this information?20PRINCIPLES OF GOOD CORPORATE REPORTING|6.TAKE A HOLISTIC APPROACH TO CORPORATE REPORTING6.Take a holistic approach to corporate reportingMain t

158、heme:Data and informationConnected to:Connectivity and coherence,entity-specificity,future orientation,strategic focus21PRINCIPLES OF GOOD CORPORATE REPORTING|6.TAKE A HOLISTIC APPROACH TO CORPORATE REPORTINGBox 6.1:Possible challenges in applicationTensions may arise among:faithful representation(n

159、eutrality),future orientation,balanceAn organisation might choose to focus on its future plans to draw attention away from a past,less favourable event.While the organisation is providing insight into its intentions and outlook for the future,such disclosures should discuss its significant aspects f

160、airly,ie without bias or manipulation to increase the chances that the information will be received favourably by users.4Organisations should ensure that,beyond the financial statements,their corporate reporting:ncovers a wide range of value drivers for the organisation,to present a holistic story o

161、f its sustainability-related and financial performance,position and future prospects;this includes intangibles not recognised on the balance sheet,such as innovative processes,know-how and corporate culture nadopts a holistic view of the organisations value chain in identifying and sourcing decision

162、-relevant data.This needs to involve leveraging a consistent approach across the entire value chain,eg to gather GHG emissions data,and where possible,to quantify the financial impact of sustainability-related risks and opportunities to support decision-making.Information on concentration of financi

163、al effects in the value chain(eg location or facility)might also be useful.As far as possible,organisations should strive to derive information from the same source for both internal decision-making and reporting externally for stakeholders decision-making,to enhance the overall connectivity and coh

164、erence of corporate reporting.The quality of source data collected influences the quality of the resulting information output.Hence,organisations should embed the qualitative characteristics of useful information throughout the corporate reporting process.A summarised overview of these characteristi

165、cs is set out in Appendix A.The corporate reporting journey is an iterative process of continual improvement,and so it is important to ensure that the reporting catalyses the necessary systemic change:that operational changes take place in the organisation;better-quality information becomes availabl

166、e to investors,who will then use these disclosures to allocate capital more efficiently and responsibly.For this to happen,widespread application of integrated thinking by organisations as well as integrative thinking by finance professionals is necessary(Machado and Chen et al.2023).Establishing an

167、d working through a sustainability reporting cycle will also facilitate this journey.6.1 Specific considerations for corporate reporters4 Conceptual Framework for Financial Reporting,paragraph 2.15(IASB 2018).As depicted in Figure 2.1,corporate reporting extends beyond financial information to inclu

168、de non-financial information,with sustainability-related information being prominent.Sustainability is a value-creation proposition and,accordingly,corporate reporting requirements need to cover a broad scope of topics that highlight the interactions between the value that organisations create for t

169、hemselves,and the impact that they have on society and planet.227.Enable and support good governance practicesPRINCIPLES OF GOOD CORPORATE REPORTING|7.ENABLE AND SUPPORT GOOD GOVERNANCE PRACTICESMain theme:Data and informationConnected to:Faithful representation(neutrality),verifiability,entity-spec

170、ificity,balance,strategic focus 23PRINCIPLES OF GOOD CORPORATE REPORTING|7.ENABLE AND SUPPORT GOOD GOVERNANCE PRACTICESIn an era of misinformation and widespread distrust(ACCA n.d.:point 3),it is crucial that corporate reporting is reliable and trustworthy to support decision-making.The application

171、of the ethical principles of the accountancy profession and effective assurance over corporate reporting also have significant roles in enhancing users confidence that the organisation is providing credible and reliable information.While the limits of corporate reporting are increasingly blurred,it

172、is still important to define its core boundaries as this clarifies what those charged with governance(eg boards)are accountable for and have oversight on,as well as what has been audited and assured.We believe that professional accountants are well placed to lead the reporting and assurance of susta

173、inability-related information,working in collaboration with others to ensure confidence and trust in the creation,protection and communication of value to organisations and society(ACCA 2020).To that end,ACCA welcomes the work by global standard-setters such as the International Auditing and Assuran

174、ce Standards Board(IAASB)and the International Ethics Standards Board for Accountants(IESBA)in developing a harmonised set of sustainability-related assurance and ethical requirements which complement existing assurance and ethical requirements applicable to financial reporting.Close collaboration w

175、ith reporting standard-setters aims to ensure that corporate reporting standards are developed after considering the verifiability of the information to be reported.Recognising the importance placed on both financial and sustainability-related information in corporate reporting,independent assurance

176、 of both should be mandatory,and as far as possible,at the same level of assurance.The higher the level of assurance provided,the more confidence intended users can place on the underlying subject matter being assured(Diolas and Rogdaki 2023).Nonetheless,policymakers,standard-setters and regulators

177、need to be mindful of their respective jurisdictions maturity levels in determining a timeline towards requiring reasonable assurance on sustainability-related information,as this may incur substantial extra costs for organisations which might not yet enjoy the benefits of doing so.They should take

178、a longer-term aim for reasonable assurance over sustainability-related information to become common practice.This will allow assurance practices to mature in tandem with standard-setting and corporate reporting practices.Effective oversight of independent assurance is also critical to the reliabilit

179、y and integrity of corporate reporting,to protect the interests of users.Therefore,regulators at the regional and jurisdictional levels should ensure that a robust system of oversight is established over time to assess and approve those seeking to conduct assurance work,and for overseeing the qualit

180、y of assurance work performed to ensure adherence to relevant assurance,ethical(including independence requirements)and quality-management standards.7.1 Specific considerations for policymakers,standard-setters and regulators24PRINCIPLES OF GOOD CORPORATE REPORTING|7.ENABLE AND SUPPORT GOOD GOVERNAN

181、CE PRACTICES5 IFRS S1,paragraph 26(ISSB 2023a).7.2 Specific considerations for corporate reportersThere is no one way to direct and control diverse and evolving organisations towards achieving their various purposes in the long term(ACCA 2018).Reporting on an organisations governance can help users

182、to understand the policies,processes,controls and procedures used to monitor,manage and oversee its strategies,risks and opportunities.5 Our engagements with stakeholders noted that reporting on governance might be improved by sharing information about challenges faced and how these were managed or

183、resolved.For example,alongside reporting on its governance committees structures and the skill sets of the members,an organisation could also identify areas where skills development is needed to enhance how the committee engages with stakeholders.Through such reporting,users can also gain insight in

184、to the organisations commitment to creating value in the short,medium and long term.Improved transparency in these areas might have the side benefit of talent attraction and retention.A lot of leaders say that they know they need a credible approach to sustainability and to communicate that.Because

185、when youre doing a job search,what do you do?You look on the web and see this organisation take this seriously and increasingly talent wants to work for organisations where their values align.And they see some organisations arent perfect but theyre on the journey,and they know what the journey is.A

186、chief executive officerInternal and external assurance have their respective roles in enhancing the integrity of,and confidence in,reported information.Care is needed to ensure that they dont duplicate each others work.The internal audit function should ensure that internal controls for the reportin

187、g process are effective,and that the information provided by different parts of the organisation is reliable and consistent.Organisations should also ensure that the same rigour is applied to the controls over both financial and non-financial information,to produce disclosures that are verifiable an

188、d assurable(Machado,Saw and Chow 2023:8.1).Where information is included as part of the financial statements or another general purpose corporate report by cross-reference,the respective responsibilities of the organisation and its assurance providers must be clear.Last but not the least,organisatio

189、ns need to embed ethics in their culture and leadership and be alert for possible ethical dilemmas in corporate reporting,among other business activities.ACCAs Ethical Dilemmas in an Era of Sustainability Reporting(Machado,Weaver and Sparkes 2023)and The New Era of Ethical Challenges for Professiona

190、l Accountants(Lane 2024)provide practical suggestions on applying the IESBA International Code of Ethics for Professional Accountants(including International Independence Standards)to navigate evolving challenges and avoid consequences such as poor-quality reporting,greenwashing,or a loss of trust.B

191、ox 7.1:Possible challenges in applicationTensions may arise among:faithful representation(completeness),verifiability,timelinessInformation must be complete,reliable and verifiable,and thus takes time to produce.This has implications for its relevance if it is delayed:for example,users may miss time

192、-sensitive opportunities.Organisations need to be mindful of time and resource pressures(Lane 2024)when reporting timelines are driven by regulatory requirements.25PRINCIPLES OF GOOD CORPORATE REPORTING|8.EASE ACCESS AND AVOID DISCLOSURE OVERLOAD8.Ease access and avoid disclosure overloadMain theme:

193、CommunicationConnected to:Connectivity and coherence,faithful representation(completeness,neutrality,accuracy),timeliness,understandability,entity-specificity,balance,concisenessIt is not enough to have good-quality information;how that information is delivered is just as important.Corporate reporti

194、ng has taken on many forms(see Box 8.1),and there is growing concern that the ever-increasing number of corporate reporting requirements is spurring disclosure overload,with increased boilerplate and duplicated disclosures across multiple reports,driven by an overly compliance-centric mindset.26PRIN

195、CIPLES OF GOOD CORPORATE REPORTING|8.EASE ACCESS AND AVOID DISCLOSURE OVERLOADCorporate reporting requirements at the regional and jurisdictional levels often specify the location of information to be reported.Care and close collaboration among policymakers,standard-setters and regulators are needed

196、 to minimise the risk of disclosure overload from duplication of information across multiple reports.Where separate reports are mandated,reporting requirements should clearly identify the objective and intended audience for each report,to ensure that content is clear,concise and meets users informat

197、ion needs.Where mandated,harmonise digital collection and reporting of data as much as possible to minimise compliance costs and the reporting burden,as well as to maximise the use and value of the data collected.Given increasingly globalised business,we call upon policymakers implementing such init

198、iatives to work closely with and seek feedback from stakeholders beyond their regional and jurisdictional borders to identify and understand any potential wider implications for constituents trade and operations.Also,consider exploring opportunities for a common platform for reporting and sharing of

199、 data to increase efficiency and minimise duplication of effort and resources.8.1 Specific considerations for policymakers,standard-setters and regulatorsBox 8.1:Disseminating corporate reporting informationExamples of corporate reports include annual reports,financial statements,management discussi

200、on and analysis,management reports,sustainability,corporate social responsibility and interim reports,which may be electronic or paper-based.Organisations often complement these with communication methods such as corporate websites,social media feeds,newsletters,earnings calls,employee meetings and

201、supplier briefings,to offer more timely and tailored information to meet their various stakeholders needs,resulting in increasingly blurred boundaries for corporate reporting.27PRINCIPLES OF GOOD CORPORATE REPORTING|8.EASE ACCESS AND AVOID DISCLOSURE OVERLOAD8.2 Specific considerations for corporate

202、 reportersOrganisations need to determine the most suitable mode of communication that would fit the needs of their intended audience.This includes considering whether information should be published in a combined or integrated report,or as multiple separate reports to cater to specific stakeholder

203、groups.Our roundtable participants had mixed views some had a clear preference for integrated reports as a way of improving connectivity and coherence,while others found such reports confusing as it could be difficult to locate specific information.While a single report is unlikely to meet the needs

204、 of every user(CPA Australia 2020),users still need to be able to gain an overall view of the performance and position of the organisation without excessive effort.With clear indexing and cross-referencing,an integrated report can provide a useful map of relevant and material information,and serve a

205、s a starting point for wider stakeholders to seek more in-depth information to meet their own information needs.Also,conciseness is key to ensuring that information reported is understandable and decision-useful to its intended audience.Organisations applying integrated thinking(Chen and Hawksley 20

206、21)combined with finance professionals applying integrative thinking(Machado,Chen et al.2023)would be well-placed to:nmaximise the benefits of cross-referencing to improve information connectivity and coherence nmove away from an overly compliance-centric mindset and avoid boilerplate disclosures,an

207、d nremove excessive,repetitive or redundant disclosures to avoid information overload.Where possible,organisations should consider which technology,or information system,will most facilitate timely access to decision-useful information and reduce the risk of information overload.Innovations include:

208、allowing users to customise their own reports by selecting the relevant sections of the corporate report for download;and providing open spreadsheets that can be used for analysis,or interactive charts with which users may engage,for their respective needs.Here,care is needed to assess technology an

209、d data needs clearly and objectively,ahead of any investment,so as to ensure the best use of available resources to further the organisations objectives.Where disclosures are unlikely to change significantly year on year,they might be presented as publicly available standing information in,say,the o

210、rganisations website.Other,more specific or precise information that needs to be updated from time to time,eg revenue,staff cost,research expense,cash and bank balances,carrying amounts of assets and liabilities,GHG emissions,and employee diversity,might be presented somewhere that can be accessed b

211、y investors and other relevant stakeholders.Besides quantitative information,access to and analysis of narrative information may also be important in capturing aspects of organisations value creation,preservation and erosion that may not be currently quantifiable.It is important that consistent mess

212、aging extends beyond the corporate report.Although an organisations marketing communications might be distinctly separate from its corporate reporting information,one would still expect that the messaging is consistent.For example,a statement on a particular product claiming that it has been sustain

213、ably manufactured is,in a way,a measure of the organisations confidence and must have been backed by proper processes and governance within the organisation.A synthesis of comments from experts interviewedBox 8.2:Possible challenges in applicationTensions may arise among:connectivity and coherence,r

214、elevance(materiality),comparability,entity-specificity,strategic focusUsers might favour standardisation as it helps them to navigate and find the information that they are seeking across multiple organisations.In focusing on comparability and consistency,however,corporate reports might inadvertentl

215、y compromise its sharing of decision-useful information unique to the organisation,the industry and the environment in which it operates.28PRINCIPLES OF GOOD CORPORATE REPORTING|GLOSSARYGlossaryTerms defined in the Glossary are in italics the first time they appear in this report.TERMDESCRIPTIONSOUR

216、CEAIArtificial intelligenceBuilding blocks approachThe building blocks approach enables organisations to use a global baseline of requirements to provide sustainability-related information that is material to investors,with the flexibility to meet the information needs of other stakeholders.Adapted

217、from IFAC 2021Capitals Capitals are stocks of value on which all organisations depend for their success as inputs to their business model,and which are increased,decreased or transformed through the organisations business activities and outputs.The capitals are categorised in the Integrated Reportin

218、g Framework as financial,manufactured,intellectual,human,social and relationship,and natural.Adapted from Integrated Reporting Framework(IFRS Foundation 2021a)Corporate reportersFor the purpose of this report,corporate reporters refer to organisations,senior management,professional accountants,and o

219、ther individuals involved in the corporate reporting process within an organisation.General purpose financial reportsReports that provide financial information about a reporting entity that is useful to primary users in making decisions relating to providing resources to the entity.General purpose f

220、inancial reports include but are not restricted to an entitys general purpose financial statements and sustainability-related financial disclosures.Adapted from IASB Conceptual Framework for Financial Reporting,Appendix(IASB 2018)and IFRS S1,Appendix A(ISSB 2023a)General purpose financial statements

221、 A particular form of general purpose financial reports that provide information about the reporting entitys assets,liabilities,equity,income and expenses.IASB Conceptual Framework for Financial Reporting,Appendix (IASB 2018)Greenhouse gas(GHG)emissionsThese comprise the seven greenhouse gases(GHG)l

222、isted in the Kyoto Protocol:carbon dioxide(CO2),methane(CH4),nitrous oxide(N2O),hydrofluorocarbons(HFCs),nitrogen trifluoride(NF3),perfluorocarbons(PFCs)and sulphur hexafluoride(SF6).They are categorised according to the source of emissions.Scope 1 greenhouse gas emissions.Direct GHG emissions that

223、occur from sources that are owned or controlled by an organisation.Scope 2 greenhouse gas emissions.Indirect GHG emissions from the generation of purchased or acquired electricity,steam,heating or cooling consumed by the organisation.Purchased and acquired electricity is electricity that is purchase

224、d or otherwise brought into an organisations boundary.Scope 2 GHG emissions physically occur at the facility where electricity is generated.Scope 3 greenhouse gas emissions.Indirect GHG emissions(not included in Scope 2 GHG emissions)that occur in the value chain of an organisation,including both up

225、stream and downstream emissions.Scope 3 GHG emissions include the Scope 3 categories in the Greenhouse Gas Protocol Corporate Value Chain(Scope 3)Accounting and Reporting Standard.Indirect GHG emissions refer to emissions that are a consequence of the activities of an organisation,but occur at sourc

226、es owned or controlled by another organisation.Adapted from IFRS S2,Appendix A (ISSB 2023b)29PRINCIPLES OF GOOD CORPORATE REPORTING|GLOSSARYTERMDESCRIPTIONSOURCEIASBInternational Accounting Standards BoardIESBAInternational Ethics Standards Board for Accountants IFRS S1IFRS S1 General Requirements f

227、or Disclosure of Sustainability-related Financial Information(ISSB 2023a)IFRS S2IFRS S2 Climate-related Disclosures(ISSB 2023b)IFRS Sustainability Disclosure Standards or ISSB StandardsCollectively refers to IFRS S1 and IFRS S2.(ISSB 2023a;2023b)Integrative thinkingThe thinking and action by individ

228、uals that will lead to integrated thinking at the organisational level.Such thinking requires personal and interpersonal capabilities,a set of skills,behaviours and mindsets relating to continually becoming,exploring,co-creating,empathising,and empowering.Integrative Thinking:The Guide to Becoming a

229、 Value-adding CFO(Machado,Chen et al.2023)Integrated thinkingThe thinking and action by collections of people,therefore including teams and organisations.Integrative Thinking:The Guide to Becoming a Value-adding CFO(Machado,Chen et al.2023)ISSBInternational Sustainability Standards BoardJurisdiction

230、al modificationsChanges to or exemptions from requirements in IFRS Sustainability Disclosure Standards other than transition adoption reliefs.IFRS Foundation The Jurisdictional Journey towards Globally Comparable Information for Capital Markets:Inaugural Jurisdictional Guide for the Adoption or othe

231、r Use of ISSB Standards(IFRS Foundation 2024a)MaterialityInformation is material if omitting,misstating or obscuring it could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports,which provide financial information a

232、bout a specific reporting entity.Notes(a)IFRS 18 has an effective date of 1 January 2027(IFRS Foundation 2024b).(b)This definition is aligned with that used in the IFRS Sustainability Disclosure Standards(IFRS Foundation 2024c).IAS 1,paragraph 7;IFRS 18,Appendix AOther users of general purpose corpo

233、rate reports(other users)They are users of corporate reports other than primary users of general purpose financial reports.For example:individuals from within the organisation(internal stakeholders),such as those in risk management,finance,human resources,technology,and operational functions,includi

234、ng the supply chain management functions individuals external to the organisation(external stakeholders),such as key suppliers and customers in the value chain,and regulators.Adapted from Sustainability Reporting The Guide to Preparation(Machado,Saw and Chow 2023)30TERMDESCRIPTIONSOURCEPrimary users

235、 of general purpose financial reports(primary users)They are existing and potential investors,lenders and other creditors of an organisation.Adapted from IFRS S1,Appendix A(ISSB 2023a)SMEsSmall and medium-sized or lesser-resourced entities(SMEs)tend not to have public accountability and may publish

236、general purpose financial reports for external stakeholders.These organisations tend to have simpler organisation structures and have lesser resources.Therefore,they are less able to meet the full requirements of reporting standards than larger organisations.An organisation may identify as being an

237、SME by using the size criteria of the jurisdiction in which they are based.Adapted from IFRS for SMEs Accounting Standard,Section 1 (IASB 2015)Those charged with governanceThe person(s)or body with responsibility for overseeing the strategic direction of the organisation and obligations related to i

238、ts accountability.This includes oversight of its financial and sustainability reporting process.Those charged with governance may include management personnel,or an owner-manager.Adapted from ISA 200,paragraph 13(o)PRINCIPLES OF GOOD CORPORATE REPORTING|GLOSSARY31PRINCIPLES OF GOOD CORPORATE REPORTI

239、NG|ACKNOWLEDGEMENTSAcknowledgementsWe acknowledge and thank all these individuals and ACCA Policy and Insights colleagues who participated in our global roundtables,workshops and interviews for their invaluable insights.Joseph Owolabi,AustraliaAzeeza Aziz Khan,BangladeshRaqibul Faiaze Mohammad Ikram

240、ah,BangladeshAnton Stankov,BrazilKwame S Barnieh,GhanaVicky Giannopoulou,GreeceAnne Copeland,Hong Kong SAREddie Ng,Hong Kong SARGiovanna Michelon,ItalyFazidah Zakaria,MalaysiaFen Nee Lim,MalaysiaJoshua Rayan,MalaysiaTse Mei Ng,MalaysiaTaiwo Samuel Fowowe,NigeriaEkta Sitani,PakistanThomas Egan,Singap

241、oreNatalie Makoni,South AfricaOxana Losevskaya,UAEAlan McGill,UKAlison Fordyce,UKDani Saghafi,UKJonathan D Shaw,UKStuart Cooper,UKVictoria Gillespie,UKYen-pei Chen,UKRodney Ndamba,Zimbabwe32PRINCIPLES OF GOOD CORPORATE REPORTING|APPENDICESAppendicesAppendix A:Qualitative characteristics of useful in

242、formation in corporate reporting overview(Adapted from IASB Conceptual Framework for Financial Reporting(IASB 2018)and IFRS S1,Appendix D(ISSB 2023a).)FUNDAMENTAL QUALITATIVE CHARACTERISTICS ENHANCING QUALITATIVE CHARACTERISTICS Relevancen Capable of making a difference in decisions by primary users

243、.n Materiality Information is material if omitting,misstating or obscuring that information could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports.Faithful representation,achieved through three characteristics.n

244、Completeness Contains all relevant information for understanding of the position,performance and,where appropriate,the prospects of the reporting entity.n Neutrality Without bias in selection,presentation or disclosure.n Accuracy Is free from material error.Has precise descriptions.Clearly identifie

245、s estimates,approximations and forecasts that are:developed using reasonable assertions and inputs,and based on information of sufficient quality and quantity.(Note:Some estimates may turn out to be inaccurate,but to be free from error,those estimates should be based on the best evidence available a

246、t the time.)Verifiabilityn Is objective and open to testing.n Enables knowledgeable and independent observers to reach consensus,although not necessarily complete agreement,that the information is a faithful representation.Comparabilityn Enables understanding of similarities and differences between

247、items and/or organisations,particularly within the same industry or sector.n Is sufficiently consistent to allow comparison across reports of the same organisation or between different reporting periods.n Facilitates understanding of trends,eg through comparison of year-on-year results or between or

248、ganisations.Timelinessn Is in time to be capable of influencing decisions.n The more up to date information is,the more useful it is.Understandabilityn Is clear and concise.n Communicates complex matters clearly.n Considers,with reasonable assumptions,the users level of understanding.Appendix B:Qual

249、ities relating to corporate reporting generally overview(Adapted from Integrated Reporting Framework(IFRS Foundation 2021a).)ENTITY-SPECIFICITYBALANCEFUTURE ORIENTATIONSTRATEGIC FOCUSCONCISENESSn Tells the unique story of the organisation,and the industry and landscape in which it operates.n Discuss

250、es fairly all significant aspects,presented in a neutral way.n Balances conflicting characteristics and qualities in corporate reporting.n Provides insight into the organisations intentions and outlook,and how these will create value in the short,medium and long term.n Provides insight into the orga

251、nisations strategy and business model and how these will enable it to achieve its intended future outcomes.n Focuses on including relevant matters and excluding less significant matters.n Maximises use of cross-referencing that links to greater detail,reducing duplication and clutter.33PRINCIPLES OF

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