WORKSHOP on INTANGIBLES, INTELLECTUAL CAPITAL & EXTRA-FINANCIAL INFORMATION

<IR> – an Untilled Field

Ian BallInternational Integrated Reporting Council

September 2014

NGOs

Companies

Investors

Accounting

Standardsetters

Regulators

Chair: Prof Mervyn KingCEO: Paul Druckman

Who is the IIRC?

Why <IR>: More than financials

The Framework: Fundamental Concepts

The Value Creation Process

Votorantim link <IR> to their Report 2012

<IR> - Global Uptake

South Africa endorses the Framework

<IR> set for take-off in Singapore

<IR> promoted by G100 and major Superannuation Funds

Brazilian Stock Exchange calls for “Report or Explain” on Integrated Reporting

European Commission hails <IR> as “step ahead”

<IR> crucial part of ‘Japan’s Revitalization Strategy’

Harvard Business School study hails <IR> as enabler of financial stability

India: <IR> Lab backed by CII

UK Guidance on Strategic Report consistent with <IR>

Malaysian Prime Minister declares business take up of <IR>

The World Bank implement <IR>

Recommendation to G20 on <IR>

Where do intangibles fit?

• Why the untilled field?• Does the field have well-defined boundaries?• What count as good examples?• How do we identify the best “measures”?• The “unique story”/comparability trade-off• Intellectual capital, human capital and social

and relationship capital – does the categorization work?

Final Comments

• Attribution theory– In reporting– In relation to outcomes

• Public sector application– Initial focus of <IR>– Pioneer network

• Regulation– Not yet…

InternationalIntegrated ReportingCouncil