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THE INSTITUTE OF CHARTERED
ACCOUNTANTS OF BANGLADESH
Members’ Conference on
INTEGRATED REPORTING: Challenges and Opportunities
Anwaruddin Chowdhury
Member Council & Past President ICAB, Director CAPA Board and
Member IPSASB CAG
Dhaka, 30 April 2017
Regulators, Standards Setters & Professional Bodies 2
PREAMBLE
ALLAH SWT’s Revelation of the holy Quran upon Prophet Muhammad SAW
Religious, Philosophical Perceptions of Knowledge – Accounting and Reporting
GATS-WTO Regime Recognition (1996)
SAARC Islamabad Declaration (2004)
Corporate Frauds of New Millennium – (Enron) ?
Role of Auditors and Rating Agencies (Anderson) ?
Strengthening CG Practices - (Regulatory Oversight)
Recent Developments – Impact on CR and CG / FR & AP
Global Financial Crisis/Euro zone Debt Crisis
Regulatory Failure – Sub-prime Lending/Derivatives
G-20 Summit (Pittsburg 2009) Declaration – Reporting Standards
Critical Nature of Financial Markets - Role of Accountants/Rating Agencies
Convergence to Globally Harmonized High Quality Accounting/FR Standards
Important Role of Accountants - Market Confidence, Global Recovery
Lessons Learnt & Way Forward
UK Brexit Impact – Economic, Trade and Professional Implications
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IR - BACKGROUND SCENARIO
Evolving Factors
Globalization Induced Interdependencies in Economies, supply chains and global consumption, phenomenal levels of technological advances and innovations
Actual and prospective resource scarcity (Energy and Food security)
Environmental concerns (climate Change, ozone, CO2 emissions )
Legal Status of Quito Protocol / Rio20+Enviornment Summit-2012
Growing policy issues/Response to financial governance and other crises
Enhanced expectations of corporate transparency and accountability
Resultant Impaction
Major changes in business models aimed at value generation
Measurement, recording and reporting of activities, reflecting appropriate resource management for sustainable development
Provision for increased stakeholder value information GRI / IR
IR is designed to enhance & consolidate existing reporting practices to move towards a reporting framework the provides the information needed to assess organization sustainability /value in the 21st century.
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CONCEPTUAL DIMENSIONS
Topicality, Significance and Dynamics of the CPD Conference Theme
Financial Reporting/Audit and Assurance/ CG/ EG
Vision-Leadership-Innovation-Sustainability
Accountants as Change Agents/ Innovation Catalysts
Vision/ Thought Leadership/ Governance/ Ethics
Evolving, Enhanced, Diverse Strategic Role of Accountants
Visionaries /Corporate Leaders/ Strategists/ Technologists
Economic/ Development Consultants/ Policies Formulation
Ensuring Sustainability of Business and Development Process
Sustainable Development Warrants SR >>>IR (VRM)
Impact of Climate Change and Global Warming –CO2/Ozone =Mitigation
Green Environment/ Green Reporting / Green Banking/ Green Taxation
IFAC (PAIB)-Accountants Value Generators/Enablers/Preservers/Reporters
Value Reporting Models : Sustainability Reporting/ Integrated Reporting
Enhanced Diversified/Specialized Role of Accountants - (eg Carbon Trading)
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FROM PACIOLI (DE) TO KING <IR>
Luca de Pacioli generated a method (double entry system of book-
keeping), through which a business and its performance could be
evaluated as a means of making its owners accountable.
FINANCIAL REPORTING (International Standards)
While Pacioli’s focus was purely financial, Professor Mervyn King
spearheaded a multi-capital approach to reflect how value is generated
in a knowledge-based resource constrained global economy. VR = IR
<Modified from Paul Druckman, Financial Management, March 2016>
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POSITIONING INTEGRATED REPORTING
INTEGRATED THINKING
Resulting in: Sustainable organizations, financial markets, & economies
International
Standards
Financial
Performance Transparency Sustainability
Reporting
Overall
Performance
Story
Integrated
Reporting
Source : IFAC
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INTEGRATED REPORTING From INTEGRATED THINKING
Source : IIRC
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Value Reporting for Sustainable Development = Integrated Reporting
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IFAC VALUE GENERATION MODEL
Public Interest Input
Key Resources
Key Value-Adding
Activities
Key Outputs
Key Outcomes
Societal Benefits
+ >> >
Our Values: Expertise, Integrity, Transparency
Source : IFAC
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NON-FINANCIAL ASSETS (INTANGIBLES)—THE MOST IMPORTANT DETERMINANTS OF VALUE
Measuring & managing intangibles and connectivity between financial and non-financials
Source : IFAC 10
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IFAC AND INTEGRATED REPORTING <IR>
IFAC and IIRC Strategic Partners – (IFAC - IIRC MOUs)
The global profession’s commitment to <IR> as a means of:
Enhancing corporate reporting; and
Enabling resilient and responsible organizations
IFAC’s public interest mandate - Focus on profession’s contribution
to societal objectives
Addressing the problems of the corporate reporting system
Sustainable organizations and societies ultimately depend on a changing mindset, purpose, and approach based on integrated thinking
IFAC Publication November ‘15:
Vision and Framework for Integrated Thinking
Enhances the relevance of finance professionals and links to business partner agenda
Focus on the information needed for decisions value generation
Source : IFAC
GENERATING VALUE WITH INTEGRATED THINKING
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Integrated Reporting an Opportunity to Generate value (internal benefit) Tell the story (external benefit)
Research of IIRC’s Pilot Programme Companies Realizing the Benefits, The Impact of Integrated Reporting 71% - strategic benefits from <IR>, the most important a change in
conversations between the Board and Management 79% reported improvements in management information and decisions
IFAC<IR> IMPLEMENTATION
<IR> is a journey; it will take more than one reporting cycle Linked to strategy- Provide momentum <IR> should not be seen as just additional reporting - “Embed integrated thinking in the organization”
Don’t think of the Framework as a list of requirements - “Tell your own, unique, value generation story”
<IR> NETWORK FOR PAOS
A profession engaged and connected Exchanging ideas, knowledge and experiences Sharing resources - Key staff and volunteers How: LinkedIn - Web based resources, other means of networking Source : IFAC
INTEGRATED REPORTING – COMMUNICATING VALUE GENERATION
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IIRC & INTEGRATED REPORTING
IIRC Background Formation- August 2010, aimed at developing a globally accepted Framework for a process that results in communications by organisations about value generation over time. Comprises of representation from corporate, investment, securities, regulatory, standard setting , accounting, academic sectors and civil society.
Restructured - Nov 2011. Chair: Prof Mervin King CEO: Paul Druckman/Richard Howitt
IIRC Vision World in which IT is embedded within mainstream business practice in the public and private sectors, facilitated by IR as the corporate reporting norm. The cycle of IT and IR, resulting in efficient and productive capital allocation, will act as a force for financial stability and sustainability.
IIRC Definition of Integrated Reporting and Integrated Report <IR> is a process founded on integrated thinking that result in a periodic integrated report by an organization about value generation over time and related communications regarding aspect of value generation.
An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of external environment, lead to a generation of value in the short, medium and long term.
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IIRC & INTEGRATED REPORTING
IIRC Objective
Provide framework for a new reporting model to enable organizations to provide concise communications to broader stakeholder groups about their values (strategies, governance) generated in the short, medium and long term, linked to financial performance. Framework published Dec 13.
IR Framework
Provide fundamental change in the way in which organizations are managed and report to stakeholders. IR supports “integrated thinking” and “integrated decision making.” Integrated Thinking (IT) described as “active consideration by an organization of the relationships between its various operating and functional units and the capitals that the organization uses or affects”.
IR Objectives
Improve quality of information; Provide more cohesive, efficient approach to corporate reporting; Enhance accountability and stewardship; support IT, decision making and actions focused on value generation
IR Fundamental Concepts
Value generation for organization and for others; The Capitals (resources and relationships); The Value generation process.
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IR OVERVIEW - BANGLADESH POSITION
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Global Economic Challenges >>>Opportunities
MDGs SDGs, Macro Economic Stability and Growth Impact
SR IR for Public and Private Sector Business Sustainability
Envrn/Social /Govrnce Issues = Factory Conds, Safety Stds/Child Empl
Recent Events – Gas Fields/ RMG Factories Disasters (Fire/Subsidence)
Green Reporting, Green Finance, Green Taxation
Transformation of Business Operations and Resource Management
Corporate Reporting Models - Value Reporting /Sustainable Development
IR Framework – Conceptualization/Definitions
Corporate Reports – Current Status and Trends
Govt Development Strategies-Commitment to Sustainable Growth
Green Banking Guidelines Issued – Green Reporting Mandated by BB
No Legal Mandate for Integrated Reporting or Sustainability Reporting
IR Practices Virtually Non-Existent / SR Limited Applications
Regulatory Directives /Voluntary Practices of CG, CSR, Green Reporting.
Awards for Financial Reporting/CG/CSR & Environment Reporting
Comprehensive Financial Statements & Disclosures - Economic, Governance , Social , Environmental (Sustainability) Issues
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IR - PUBLIC SECTOR APPLICATION PERSPECTIVES
Sustainability and Integrated Reporting are equally applicable to Public and Private Sector Entities - Financial and Corporate sectors . SMEs and NGOs ?
Facilitate Strategic Sustainable Development of Public Sector Organizations
Enable Optimum Deployment, Utilization of Public Resources for Sustainable Development
Render Holistic Meaningful Information to the Govt for the Public Interest
Enable Effective Monitoring & Evaluation of Govt /Public Expenditure
Provide Enhanced Transparency of Information (Financial /ESG) and Accountability in Government and Corporate Decisions
Reduce Corruption /System Loss/ Inefficiency through Effective SR/ IR
Promote Investment , CMD, Industrialization, Exports and GDP Growth
Develop Requisite Skills for IR - Knowledge Sharing Between OCAG-ICAB
SCOPE and SPEMP B – PPP for Improved Audit Quality Assurance – Perspectives
CORPORATE REPORTING MODELS VALUE REPORTING = SR / IR
Accounting for Sustainability-IFAC Sustainability Framework 2011 Position Professional Accountants for Long-Term Sustainable Value Generation
Sustainability – 3 Important Dimensions: a) Economic Viability, b) Social Responsibility, and c) Environmental Responsibility – Interconnectivity
Sustainability – 3 Perspective: Business Strategy, Operations & Reporting
GRI SR Std Practice for SD- Triple Bottom Line Approach = Economic, Social & Environmental Performance = Reporting Adds Value and Achieves SD
SR Supporting Investor Needs Through ESG Factors : Environment/ Social/
Governance Considerations : Facilitate Sustainability & Organizational Success by
Engaging All Stakeholders & Enhance Performance of Companies by Good Governance
* Environmental - Impacts on Living/Non-Living Systems, Risks & Performance Related to Inputs (Water, Material, Energy) and Outputs (Emissions, Wastes);
* Social - Diversity, Human Rights, Training & Development, Consumer Protection Health, Safety Standards ;
* Governance - Board Effectiveness & Composition, Term, Remuneration & Conduct of Directors, Compliance, Legal & Litigation Issues (CG considerations)
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Role of IFAC (PAIB)/ GRI/ IIRC/ Other Institutions (Prince A4S Project)
MOU Between IIRC and IFAC of September 2012 – Vision for Evolution of Corporate Reporting for 21st Century Indicating Important Role of <IR>.
Describes Role & Purpose of IR, Acknowledgment, Commitments, Consultation, Intel
Property, Confidentiality, Costs, Publicity, Institutional Arrangement, Contact, Status, Validity, Revisions, Assignment , Governing Law and Jurisdiction Coverage
MoU Definition of <IR> = Means by which Companies Communicate with Existing
and Potential Investors and other Stakeholders about the way in which their Strategy, Governance, Performance and Prospects Lead to Value Generation, Preservation and Reporting over short medium and long term perspectives.
GRI Sustainability Reporting Framework - Key Features : a) Comprehensive
Scope, Covering Main Sustainability Issues, b) Continuous Development, Reflecting User Experience, c) Multi-Stakeholder Framework & Governance Model, d) Universal Relevance, Including for Private Sector, Public Agency and Civil Society Organizations
GRI – SAFA MOU 2011
Status on SR/IR Application in SAARC Countries
SAFA/ CAPA Member Bodies /PAOs– Status and Initiatives
Integrated Reporting – Elucidation (Diagrams)
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CORPORATE REPORTING MODELS VALUE REPORTING = SR / IR
SUSTAINABILITY REPORTING
Source : Prince of Wales Project on A4S, UK
Triple Bottom Line Approach (Economic - Social – Environment)
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INTEGRATED REPORTING
IR = FR + SR (Environment-Social-Governance)
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Source : ICAB (AC)
INTEGRATED REPORTING
Connecting Financial and Non-Financial Information to Overall Business Model
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Source : Earnest & Young
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IR PERSPECTIVES -PERFORMANCE & VALUES
Source : KPMG International
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GLOBAL STATUS OF INTEGRATED REPORTING (2012)
Source : GRI, July 2012
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Over 1,000 organisations do <IR>
And over 35% say they will
750 participating in <IR> Networks worldwide
Over 50% of CEOs, CFOs and COOs
are moving towards <IR>
182 Businesses
in Japan do <IR>
Source : IFAC (PAIB and IR Lead)
GLOBAL STATUS OF INTEGRATED REPORTING (2016)
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UNITED KINGDOM:
The Strategic Report, together with the Financial Reporting Council’s Guidance, is consistent with Integrated Reporting
<IR> should not be seen as more reporting We use different words in the UK. Strategic Report, not Integrated Report, but
we are on the same journey with the same purpose. The principles in a UK strategic report are consistent with an integrated report. And we look forward to continuing to work closely with the IIRC as it pursues its mission in the years ahead. (Stephen Haddrill, CEO, FRC, UK)
NETHERLANDS:
More than a third of Dutch listed companies are working towards <IR>
Eumedion, which represents institutional investors’ interests, called on Dutch companies to take concrete steps towards <IR>
THE USA:
Harvard Business School research concluded that “more <IR> is associated with a more long-term investor base”
Businesses adopting <IR> include PepsiCo, Microsoft, GE and Prudential
Larry Fink, CEO, Black Rock called for CEO’s to communicate their strategic framework for long-term value generation
GLOBAL STATUS OF INTEGRATED REPORTING
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BRAZIL: Brazilian Stock Exchange BM&FBOVESPA encourages listed companies to produce
integrated reports on a ‘report or explain’ principle. The <IR> network in Brazil has over 300 participants SOUTH AFRICA: Companies listed on the Johannesburg Stock Exchange have been producing
integrated Reports since 2010 The Integrated Reporting Committee of South Africa endorsed the International
<IR> Framework in 2014. JAPAN: Around 200 companies adopted Integrated Reporting Japan's Ministry of Economy, Trade and Industry has endorsed <IR> as a means
of communicating the long-term value creation proposition of companies. SINGAPORE: The Singapore Stock Exchange produces an integrated report The Singapore Accountancy Commission is working with the Ministry of Finance
to set out a route towards Singapore’s adoption of <IR> MALAYSIA: Malaysian Prime Minister said, “..the Securities Commission, together with
professional bodies and other stakeholders, is exploring avenues to enhance the quality of information available to the capital market. One of the options
being considered is the eventual introduction of <IR>
GLOBAL STATUS OF INTEGRATED REPORTING
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SAARC COUNTRIES :
The Indian <IR> Lab led by the Confederation of Indian Industry and comprised of 9 leading companies and support from ICAI, Cost Accountants and Corp Secretaries, is engaged in <IR> research and dissemination, leading to production of IR in industries and corporate sectors
SEBI has provided a vision and momentum is building
India - SR Mandatory for Listed Companies - Detailed National Guidelines on Social, Environmental & Economic Responsibilities of Business Issued by Ministry of Corporate Affairs -Elucidating on Sustainable Development and Transparency Imperative, Overview of SR Link to GRI Framework. SR Awards by ICAI & ICA Cost from …... IR Awards?
Pakistan - Extensive Application of SR (Not Mandatory). SR Awards Jointly
Organized by ICAP/ICMAP from 2011. IR Awards ?
Sri Lanka - Mandatory Application of SR. Increasing IR Application (Not
Mandatory). SR Awards by CA SL/CMA SL for Several Years……….
Nepal - Voluntary Application of SR . IR ? Awards Not Introduced
Bangladesh - Increasing Voluntary Application of SR (Financial Sector
Entities, Multinationals). IR - Thought Process ! (Appendices). ICAB
Initiatives for SR/ IR Awards. Green Banking/Reporting Mandatory for
Banks/CG and CSR Reports widely Published
GLOBAL STATUS OF INTEGRATED REPORTING
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SAFA INTEGRATED REPORTING AWARDS
SAFA has been giving Awards for Integrated Reporting category since the last couple of years, as an integral component of SAFA annual BPA Awards.
The recipients for the SAFA Integrated Reporting Awards 2016, for Corporate Reports 2015 are as follows:
Diesel & Motor Engineering PLC : Sri Lanka Winner
Mercantile Investment & Finance PLC : Sri Lanka First Runner-Up
L B Finance PLC : Sri Lanka Second Runner-Up
IDLC Finance Limited : Bangladesh Merit
Fauji Fertilizer Company Limited : Pakistan Merit
CPA Australia - First Professional Accounting Body to Produce IR, Independently
Assured and Level Checked by GRI
ACCA (UK) –Has been preparing Integrated Report, as its principal annual
Corporate Report since 2013
INTEGRATED REPORTING - PAOs
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IR IMPEDIMENTS / CHALLENGES
Lack of Awareness of Value Reporting & Benefits
Conservative Mindset Averse to Changes/ New Initiatives
Increased Cost of Doing Business for FIS and Corporate
No Legal Mandate (Limited Regulation) for IR Practice
Non Availability of Relevant Computational Data
Lack of Value Reporting Framework – (SR Guidelines issued by India)
Lack of Established Standards or Disclosures for IR
Inadequate Knowledge, Technical Skills & Professional Competence
Lack of Measurement Parameters for Non Financial Elements
Weak Governance Models , Particularly in Private Companies & NGOs
Inadequate Focus on Conservation & Environment Friendly Technologies
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IR CHALLENGES
Developing Adequate Awareness for Value Reporting (SR/IR)
Mindset Changes - Profession , Business , Regulators and Civil Administration
Major Change for Accountants and Corporate Reporting
Absence of trained CAs/ Competent Professionals
Formulating Parameters for Measuring Non Quantifiable ESG Aspects
Complexity for Measuring and Quantifying Non Financial Metrics and Integrating them with Financial Performance - Inconsistent Diversity
Devising Value Reporting Guidelines for NGOs, Public and Private Sector Entities.
Acquiring Professional Knowledge, Skills and Competence for Value Reporting
Financial Resources/Donor Support for Conversion to Value Reporting Practices
Developing Due Diligence and Good Governance Strategies for IR Practices
Overcoming Analytical Weakness and Provision for Availability of Relevant ESG Data
Formulation of Computational Guidelines for Value Reporting Purposes
Institutional Arrangement / Regulatory Framework for Governance of IR Processes
Bangladesh Status
Apprehensions, Uncertainties, Practical Problems in Resolving/ Reporting of Economic Social and Environment Aspects in Annual Corporate Reports
Integrated Report – Principal or Supplementary Corporate Report ? (IIRC - No mandate or regulatory guideline……) ?
Needs Familiarization with Specialized Knowledge , Skills and Practice
Apprehension of Exploitation for PR and Marketing Purposes – Green !!!
Lack of Stakeholders Information Needs by Reporting Corporate
Lack of Top Management Support and Experience for IR !!!
Lack of Requisite Organizational Governance and Reporting Models for IR
Definition of KPIs and KRIs ? Reliable Measurement Indicators for V R ?
Lack of Assurance Re-Certification Agencies for Non Financial Information
Accounting Renaissance ? Evolved & Broadened Role of Accountants
Accountants Need to Interpret : The linkages between an organization’s strategy , governance and financial performance, and Organization’s performance within economic, social and environmental context – Complex ?
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IR CHALLENGES
IR BENEFITS / OPPORTUNITIES
IR = “Integrated Thinking – which Involves Monitoring, Managing and Communicating full Value Generation Process and Contribution to Success
Provides Holistic, Meaningful Value Added Information to Diverse Stakeholders
Representation of Resource Stewardship/Value Reporting for Stakeholders Needs
Harmonization of FR with SR - Unique Business Reporting Model Dimension
Provides Representation of Entity’s Stewardship and Value Sustainability
Combines Material Information on Corporates Strategy, Governance , Social Aspects, Performance Prospects – Reflecting the Economic, Environmental, Social and Governance Contexts of Operations and Values
Reflects Inter-dependence of Entity’s Different Resources & Relationships / “Capitals” – (Financial Capital, Manufactured C, Human C, Intellectual C,
Natural C and Social Capital) - Entity’s Access to and Impact thereon
Reporting the Inter-dependence Information is Critical to : a) Meaningful Assessment of Entity’s Long-term Viability and Strategic Business Model ; b) Meeting Information Needs of Investors and other Stakeholders ; c) Effective Allocation of Scarce Resource for long term Business Sustainability.
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OPPORTUNITIES AND PROSPECTS
IR Practices opens up a whole spectrum of Opportunities for Accountants as strategic advisors, corporate reporting and management specialists
IR Demonstrates the Linkage Between an Organization Strategy, Governance & Financial Performance , and the Economic, Social and Environmental Context
Provide Thought Leadership, Act as Change Agents & Catalyze Innovation
Significant Innovative Engagement Opportunities for Professional Accountants
Potential for Rewarding, Exciting Professional Opportunities for Accountants
IR Framework Ensuring Sustainable Strategies for Enhanced Accountability
Enhanced Transparency & Credibility in Public and Private Sector Reporting
Address Manifold Impediments / Challenges for Socio-Economic Development
Optimum Utilization/Reporting Resources for Sustainable Development
Facilitate Sustainable Development for Inclusive Economic Growth.
Reduce Corruption /System Loss/ Inefficiency through increased Transparency
Promote Investment , CMD, Industrialization, Exports and GDP Growth
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Stimulate Mindset Changes – Civil Admin, Regulators, Corporates & Professional
Transformation of Corporate Reporting for Stakeholders Value Addition
Significant Enhancement in Financial Reporting Practices Through IR
IR Development Aims to Enhance & Consolidate Existing Reporting Practices - Formulating a Reporting Framework that Provides Information Needed to Asses Organizational Value in the 21st Century
SR Practice Effects Value Addition for Achieving Sustainable Development by Incorporating Economic Social and Environmental Performance of Entities
Scope of Value Reporting Practices Orientation through PPP Between OCAG & ICAB Aimed at Implementation of SR & IR In Public and Private Sectors of Bangladesh
Other Considerations & Opportunities
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OPPORTUNITIES AND PROSPECTS
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ROLE OF ACCOUNTANCY PROFESSION / OPPORTUNITIES
Accountants Can Contribute in a Plethora of Ways to Initiating , Improving and Reporting on Corporate Sustainability Efforts
Major Skills Development for Corporate and Accountants
Play Leadership Role in Establishing Business Case for SR and IR by Ensuring
Appropriate Governance Structures for Strengthen Implementation, Monitoring
and Accountability and to Effectively Engage All Stakeholders
Lead the Process in Setting Goals and Integrate Risk Management Assessment
Transfer Sustainability Performance into Commercial Advantage Through IR
According to IFAC PAIB Committee – (Professional Members Not in Public
Practice) Perform Four Broad Roles :
a) As Creators (Generators) of Value; b) As Enablers of Value ;
c) As Preservers of Value ; and d) As Reporters of Value in Organizations
Accountants are positioned to drive economic growth, contribute to business, industry, investment, overall economic development and GDP growth
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Well Positioned to Progress Value Reporting (IR) Implementation
Advocacy for concerted awareness development
Motivate Mindset Changes - Investors , Public and Private Sectors Entities,
Regulators , Government Agencies & other Stakeholders
Maintain regular interaction/consultation with IIRC for Guidance and Support
Professional Training for Technical Skills Development in Value Reporting
Devise Sustainable Strategies for IR for Private & Public Sector Entities
Design Appropriate Methodologies for amalgamation of FR with SR
Formulate Guidelines & Measurement Parameters for Non-financial Aspects
Adoption/ Customization of IR Framework for Bangladesh Perspective
Facilitate Regional Harmonization for Implementation of Best Global Practices
SAFA /ICAB National BPA Awards Catalyst for high quality Corporate Reporting
ROLE OF ACCOUNTANCY PROFESSION / OPPORTUNITIES
ACCOUNTANTS – CATALYST FOR INNOVATIVE CHANGE IN PUBLIC AND PRIVATE SECTOR REPORTING / OPPORTUNITIES
Recent Developments – Impact of Donor Funded Projects
DFID Funded Remittance and Payments Partnership (RPP)
DFID funded FIPB / BFPB – Vision-Leadership-Innovation-Sustainability
RPP / BFPB Project Objectives and Components (I-II-III)
Significant Technological Innovations
Central Bank Automation >>>BACH =BACPS and BEFTN >>> RTGS
Remittances and Payments Challenge Fund (RPCF) –Seeding ideas
Major Projects / Technological Innovations
WB Funded Project - Promoting PPP For Improved Audit Quality Assurance Between ICAB & OCAG for Knowledge Sharing
Proposed PPP Between ICAB & OCAB for Promoting Sustainability and Integrated Reporting in Public and Private Sector in Bangladesh
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ICAB INITIATIVES
Organized major International Conference in November 2011 on Best Practices and Reporting for Sustainable Development and Sustainability Reporting –Addressed by Global Professional Experts -IFAC, GRI, WB, Standard Setters
Dedicated Seminars ,Workshops & Conference on SR/IR=Manifestation of …..
Catalyzes / Encourages Professional and Corporate Understanding about Challenges, Benefits and Value Additions of IR Applications.
Apprises and motivates Government Planners, Regulators and other Stakeholders to Effect long Term IR Transitions
Engages in advocacy for Value Reporting Application (SR/IR)
Motivates Professionals & Corporates for Implementation of IR Practices
Organizes Annual Best Published Reports & Corporate Governance Award
Organizes CPD Learning/ Skills Development on topical Issues like SR/IR
Training of BB/NBR/NGOs, Other Public, Private Sector Entities
Initiate Joint Project (Knowledge Sharing) with OCAG for Development & Implementation of SR/IR Practices in Public & Private Sector Entities
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Albeit a late starter, the ICAB is moving in strides to position itself formidably to
develop awareness and promote the application of IR in the public & private
sectors -financial and corporate sector entities of Bangladesh.
As the custodian of corporate reporting in the country, the ICAB is taking-up its
position firmly to catalyze and encourage the development, implementation of
Integrated Reporting practices through dissemination of the opportunities,
benefits and value additions of IR, to diverse stakeholders and charting the
future dimensions of best global practices in IR. ICAB is considering
formulating Value Reporting Guidelines and develop a broad-based Business
Case as a marketing tool to promote conceptualization and understanding for
implementation of IR in the financial and corporate sectors. This will inspire the
CAG office to contemplate moving to IR in certain types of public sector
corporation and entities. ICAB is relentlessly exerting its best efforts to serve
the public interest, and for enhancement of knowledge, skills & competence,
- and thereby employment opportunities and earnings off its member .
ICAB STATUS / (POSITION STATEMENT)
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Assessment of Challenges and Impediments for Value Reporting
Assessment of Prospects and Opportunities for Value Reporting
Formation of an ICAB led multi-disciplinary Trust Force for awareness, advocacy and promoting the application of SR/IR in the annual corporate reports of private and public sector entities
Policy Guidelines for Value Reporting- Adaptation Through Customization
Formation of Professional Task Force Driving Innovative Changes Through Leadership and Sustainable Strategies for IR
SAFA/CAPA Member Bodies Act As Strategic Change Agents
SAFA/CAPA Platforms for Regional Harmonization for Implementation of Value Reporting Practices of (SR/IR)
Effective Interaction with IFAC/ GRI/ IIRC/ ISAR
Skills Development for Value Reporting – SR/ IR
Awareness of IAS/IFRS and ISA /ISSAIs by Reproting Entities & Auditors
Strengthening ICAB TRC - Requisite Skills for Value Reporting : SR/IR and Green Reporting / Green Taxation/ Carbon Trading etc.
POLICY ISSUES & RECOMMENDATIONS
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Mandating Listed Companies to Engaged Qualified Accountants
Audit/Professional Requisite Fees Enhancement
Expand Engagement Opportunities of Members in Innovative Areas of VR
Strengthening Corporate Governances & CSR Practices
Broadening Credit Rating Mandate – Covering Value Reporting
Effective IR Knowledge Dissemination Seminars/Workshops
Preparation of Implementation Guidelines for SR/ IR
Incorporating Accounting Leadership and Innovation Awards
Introducing Sustainability and Integrated Reporting Awards
Initiate Joint Project (Knowledge Sharing) with OCAG for Development &
Implementation of SR/IR Practices in Public & Private Sector Entities
Other Issues/ Recommendations
POLICY ISSUES & RECOMMENDATIONS
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WAY FORWARD
Development of Action Plan : Main Directions – Responsibility – Timeframe
Provision for Legal Mandate - Policy Decisions at Legislative/Regulatory levels
Fund Procurement / Development Partner Support
Inclusion of IR Agenda in WB Funded PPP Project between ICAB & CAG
Formation of High Powered Taskforce – Representation from Professional Bodies,
Regulators, Ministries, Chambers & Bourses for Implementation of Integrated
Reporting in Bangladesh within a stipulated timeframe (5-10 Years)
Formulation of Measurement Parameters for ESG Perspective
Development of Value Reporting Expertise, Standards & Practices
Initiate Measures for Consolidation of Existing FR into IR Practices
Synergize Strategic Partnerships among relevant Institutions (IIRC …)
Incentivize IFAC /IASB /ISAR to formulate Standards/Guidelines on IR
PPP between ICAB & OCAG for promoting VR (SR/IR) in Public & Private Sector
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Reporting should be driven by business models linked to strategic and
potential value generation. IR provides sustainable value additions for
relevant stakeholders-enabling better decisions, consistent with sustainable
development and economic growth of Bangladesh (country or region).
The ICAB is well positioned to develop consistent awareness, promote and
support the progressive application of global best practices in Integrated
Reporting. Albeit IR may not be adopted in the near foreseeable future, there
are strong potentials for implementation of IR practices in the long-term, in
the financial and corporate sectors, NGOs and public sector entities of
Bangladesh.
CONCLUSION
Definitely Yes ! (Global Implementation Timeframe)
WILL IR GET OFF THE GROUND ? or Will it have a spinning effect?
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So, Lets’ Go Ahead and Enhance the Professional Image
– Meet the Challenges and Utilize the Opportunities -
Devise Sustainable Strategies for Implementation of Best Global Practices in Integrated Reporting.
THANK YOU
May ALLAH Subhanawatala’s Providence be Our Guide !!
MESSAGE
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APPENDIX-I
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APPENDIX-II
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APPENDIX-III
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APPENDIX-IV
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APPENDIX-V
SAFA BPA AWARDS 2016 - INTEGRATED REPORTING WINNER
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Alan Johnson – IFAC Board and finance leader perspective
Stathis Gould – IFAC PAIB and Integrated Reporting Lead
Anwaruddin Chowdhury, PAIB Committee, ICA Bangladesh
Vrushali Gaud, India <IR> Lab
Sanjiv Kumar Chaudhary, ICAI Research Committee
Heshana Kuruppu, CPD Committee, CA Sri Lanka
IFAC – SAFA PAIB PANEL
APPENDIX-VI
IIRC Structure -
Board
Council
Ambassadors
INTERNATIONAL INTEGRATED RESEARCH COUNCIL (IIRC)
IIRC Team -
Governance & Nominations Committee
<IR> Associates
<IR> Framework Panel
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