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Executive Summary
 
In the entire report we have analyzed four key factors that are consolidated statement of
comprehensive income, consolidated and IIRC statement of changes in equity, consolidated and
IIRC statement of financial position, consolidated and IIRC statement of cash flow and now
having an in-depth knowledge of all these factors we can certainly summarize that in today’s
scenario when everybody is required to take a well-informed decision, integrated reporting is the
best way of doing so. We can clearly infer from the above four factors that the increment in
operating expenses is worth it if the net income is also increasing proportionately. The decrease
in total equity and liabilities over the year is beneficial for the company but it should work some
way out for increasing their total assets. Finally, a lucid and transparent flow of cash develops
the trust of the stakeholders and helps the customers, company and the society in making a
calculated decision.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table of Contents
                                                                                                                                    Page
Executive Summary 1

Table of Contents 2

1.      Introduction 3

2.      Analysis 3

                   2.1 Analysis 1 3

                   2.2 Analysis 2 4

                   2.3 Analysis 3 4

                   2.4 Analysis 4 4

3.      Conclusion 5

4.      Recommendations 5

5.      References 6

 
 
 
 
 
 

 
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1.Introduction

International Integrated Reporting Council (IIRC) is a company that claims to be limited by

guarantee and is accountable for creating all-inclusive and comprehensive Integrated Reporting
for various companies. Integrated Reports are a crisp and compact source of communication that
gives the right information and a holistic view of how a company is creating value. Earlier these
things went inconspicuous by most of the stakeholders but now a days with the increasing need
of making well informed decisions, the connection between the business, the investors and the
customers is being deeply observed and hence the need to creating integrated reports is being
increased. So, to provide a crystal-clear idea and the balanced information about the business
strategies employed by the company, the value created, the future perspective, etc, integrated
reporting is being done. (Isabel, 2016). According to IIRC, Integrated Reporting also keeps a
transparency and develops the trust of the stakeholders and the customers by assimilating
financial reporting and sustainability reporting. Due to IR, the communication between the
businesses and the investors (who are investing their time and money in the company) is being
enhanced. Integration Reporting is like revolution which is being followed by several companies
and which gives a focused short, medium, and long-term approach of the business.
 
2. Analysis
 
2.1   Consolidated Statement of Comprehensive Income
 
In the IIRC financial statement of 2019 ,for the year of 2019, it is clearly visible that gross
Income earned by the Council, Network, Grants and other contributions and Training and Events
is 2,518 GBP which is evidently more than in year 2018 which was 2,030 GBP. But if we see
individually, we can infer that there has been an increase in the income in all the three sectors
except training and events where there is a significant drop from 258 GBP to 193 GBP. By
critically analysing the operating expenses for both the years we can conclude that the expenses
have surely increased for the year 2019 i.e., 2,439 GBP from 1,948 GBP in the year 2018. There
has been a significant rise in the staff, outgoing grants, communication engagements and other
costs but we also see savings of 81 GBP in case of travel and subsistence cost.(Carol,2014) The
operating surplus have been declined from 82 to 79 GBP in the 2019 and there has been a hike of
5 GBP in other non-operating income. We can notice that surplus before tax and surplus for the
year have both been increased with a decrease in the tax expenses from 19 to 17 GBP in the
2019.  Finally, we can conclude that the total comprehensive income for the year has been
elevated from 66 to 70 GBP for the year 2019.
 
 
 
 
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2.2   Consolidated and IIRC statement of changes in equity

 
If compare the Year 2018 with 2019 it can be clearly deduced that the balance at the
commencement of the year i.e. 1st January, 2018 is 586 GBP for Group Retained Surplus which
is slightly more than 581 GBP for IIRC Retained Surplus. The analysis of surplus, shows that
there has been a decrease of 1 GBP from IIRC Retained Surplus to Group Retained Surplus for
2018 and a decrease of 2 GBP for the year 2019. (Stubbs,2014).  If we notice the balance
at31st December 2018, we can intuit that the IIRC Retained Surplus is 648 GBP which is
noticeably less than that Group Retained Surplus which is 652 GBP whereas on the other hand
for the balance at 31st December 2019, we can observe that the Group Retained Surplus is 722
GBP and the IIRC Retained Surplus is 720 GBP.
 
 
2.3   Consolidated And IIRC Statement of Financial Position
As we look at the consolidated and IIRC statement of financial position, we can see that for the
Group Retained Surplus there has been a decrement in the total assets from 1,774 GBP to 1,477
GBP from 2018 to 2019 and for the IIRC Retained Surplus also there has been a declination in
the total assets from 1,769 GBP to 1,473 GBP. In group we can see a hike in Prepayments and
accrued income from 42 GBP to 331 GBP in 2019 but there is also a noticeable decrement in
trade and other receivables and cash at bank. In a similar way if we scrutinise the IIRC, we can
infer that unlike the group there is a decrease in Prepayments and accrued income from 42 GBP
to 30 GBP in 2019 but an increment in trade and other receivables (Jenna,2016).  If we talk about
the equity, it is clearly visible that the retained surplus for the group has been increased from 652
GBP to 722 GBP and 648 GBP to 720 GBP for IIRC from 2018 to 2019. Liabilities are the
biggest challenge faced by any company and here we can observe that there is a growth since the
total equity and liabilities have been decreased from 1,774 to 1,477 GBP for group and from
1,769 to 1,473 GBP for IIRC.
 
2.4   Consolidated and IIRC Statement of Cash Flows
 
If we observe the data of the cash flows, we get a concise and a crystal-clear picture that there
have been huge changes in Group and IIRC from 2018 to 2019. There is a slight decrease in the
total operating surplus for both group and IIRC. In Group the decrease is from 82 to 79 GBP and
for IIRC we can see a decrease from 83 to 81 GBP for 2019. For Group there is a definite
increase in trade and other receivables from 62 GBP in 2018 to 297 GBP for 2019 whereas on
the other hand for IIRC we can see a decrement from 139 to 102 GBP. There is and evident
amount of decrease in trade and other payables in both group and IIRC from 2018 to 2019.
Finally, the Cash generated from operations has also decreased from 692 to 582 for Group and
491 to 386 for IIRC. The cash flows from operating activities have also seen a decline in both the
Group and IIRC sector and an increase in Cash flows from investing activities from 3 to 8 GBP
respectively, over an year.( John,2014).  If we compare the cash and cash equivalents at the
beginning of the period and at the end of the period, we see that it increases in the beginning and
decreases in the end for both Group and IIRC from 2018 to 2019.
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3. Conclusion
 
On analysing the integrated reports, we can conclude that it is any day better to build conclusions
on what we already have than to try creating something new out of it, which in turn helps in
contributing to the financial stability and the sustainable development of a business. This is a
future-oriented approach that brings a transparency amongst the investors, business owners and
the customers. It brings in stability and helps us manage the capitals well to create value over the
time in a well organised manner. We can infer that Integrated Reporting bring a holistic view in
making a well-informed decision, taking calculated risks, and making the most out of the
opportunities that come in their way. (George ,2015) . It basically helps in organising the
business in a very systematic and concise manner. Looking at the IIRC financial statement 2019
it is very clear that there has been an evident increase in the total comprehensive Income for the
year and it is because of the changes in the total assets, equity, and liabilities. Finally, with the
help of Integrating Reports, the cash flow is also transparent and easily understandable.
 
4. Recommendation
 
As we scrutinize the Integrated Reports, it is highly recommended that a company reduce their
liabilities and try to augment their assets which eventually will help the business in achieving
their goals and increasing their gross income. Once the assets increase, the company wouldn’t
hesitate in increasing their operational expenses because then it will be totally worth it and it
would yield good results in future. If the company ensures the use of Integrated reporting, the
organizations, the society, the investors, and the stakeholders will have a very comprehensive
communication and a transparency will be maintained which will make sure that the decisions
taken by the company are well-informed and in the interest of everyone related with the business
and this will in due course ensure that there is financial stability, enhanced performance and
hence sustainable development.
 
 
 
 
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Reference:
 
García-Sánchez, I., Rodríguez-Ariza, L. and Frías-Aceituno, J., 2013. The cultural system and
integrated reporting. International Business Review, 22(5), pp.828-838.

Adams, C., 2015. The International Integrated Reporting Council: A call to action. Critical
Perspectives on Accounting, 27, pp.23-28.

Stubbs, W. and Higgins, C., 2014. Integrated Reporting and internal mechanisms of
change. Accounting, Auditing & Accountability Journal, 27(7), pp.1068-1089.

Rodrigue, M., 2015. The International Integrated Reporting Council: A Story of Failure; ‘But
Does Sustainability need Capitalism or an Integrated Report’ a Commentary on ‘The
International Integrated Reporting Council: A Story of Failure’ by Flower, J.; The International
Integrated Reporting Council: A Call to Action. Social and Environmental Accountability
Journal, 35(2), pp.128-129.

Serafeim, G., 2015. Integrated Reporting and Investor Clientele. Journal of Applied Corporate
Finance, 27(2), pp.34-51.

Dumay, J., Bernardi, C., Guthrie, J. and La Torre, M., 2017. Barriers to implementing the
International Integrated Reporting Framework. Meditari Accountancy Research, 25(4), pp.461-
480.