Executive Summary

The people around the globe, their knowledge and finances are inextricably linked, mainly due to the
rise in globalisation and interconnectivity. The global financial crisis in 2008 and the crisis due to the
pandemic shows the need for financial stability and sustainable development. Financial instability is
leading to linking the investment decisions, organisational behaviour and financial reporting. Businesses
around the globe are looking for alternatives in current financial reporting to keep up with the
globalisation and communication trends. The risk created by gaps in financial reports has given rise to
integrated reporting.
This report aims to provide an in-depth analysis regarding the integrated reporting and its usefulness. It
informs about the requirements for the organisation while preparing an organisational report. The
report mentions the importance of integrated reporting to maintain transparency and accountability of
an organisation. This reporting method provides investors opportunities to look at organisation’s
strategy, performance and operations. In this report, analysis of Qantas Airway’s reporting is performed
and it shows Qantas follows integrated reporting system.

Introduction
Integrated Reporting provides information regarding an association’s strategic planning, management,
financial performance and possibilities that show the sustainability of the organisation. Integrated
reporting shows how an organisation creates value and if it can sustain it. Every organisation should use
an integrated report as its main reporting tool.
The main purpose to use integrated reporting is to enhance accountability, management to enhance
transparency within the organisation. It also enhances the use of information as several new
technologies are available to make reporting effective. Integrated reporting provides various
information for investors to make more informed decisions regarding their investment. Information
regarding organisation strategy and prospects will help to allocate capital effectively which in turn will
provide better long-term investment returns.

Need and Benefits of Integrated Reporting

Business around the globe is changing and the traditional reporting methods are not able to provide a
clear picture of the organisation’s performance. Mainly due to globalization and policy changes to make
organisation’s more effective for the financial crisis, the need for Integrated Report is growing.
The need for transparency and accountability is also growing since there is a huge disclosure gap in
accounting. Likewise, with differences in the reporting standards around the globe, organisations are
facing problems that function in more than one country. So, there is a growing need for an integrated
reporting framework used by companies around the globe. Since, Integrated Reporting provides
information regarding an association’s strategic planning, management, financial performance and
possibilities that show the sustainability of the organisation. Likewise, integrated reporting also
enhances accountability and management to enhance transparency within the organisation. It also
enhances the use of information as several new technologies are available to make reporting effective.
This reporting method is gaining popularity as it helps to better allocate the resources. It is gaining
popularity among investors as well since Integrated reporting provides various information for investors
to make more informed decisions regarding their investment.

Requirements for companies when completing integrated reports

Since the aim of integrated reporting is to communicate the factors that might affect the company’s
ability to improve itself over a certain period. So, companies need to prepare reports that provide full
information regarding their operations and strategies. Integrated Reporting requires companies to go
beyond the use of traditional reporting techniques which only communicated financial performance,
positions, cash flow of a certain time.
Companies using Integrated reports will have to now identify risks, opportunities, outcomes and that
affect the organisation’s ability to create value in the future. There is International Integrated Reporting
Framework for formulating integrated reports in an organisation. The following figure provides steps for
developing integrated reports. At first, organisations need to establish process parameters and they
need to filters topics (which includes identifying relevant matters, evaluating the importance of those
matters and prioritising according to their importance). Likewise, in integrated reporting, boundaries
should be set and they also need to determine the disclosure.

Establish Process Parameters

Identify Relevant Matters

Evaluate Importance
Filtering Topics

Prioritize Importance

Set Reporting Boundary

Determine Disclosers
Figure: Developing Report Content

Integrated Reports Requirements

a)       Establishing Process Parameters: An organisation needs to at first detail their operations,

performance and impacts. They need to establish the scope of the materiality determination process.
This helps the organisation to know the activities that create value for the organisation.

b)      Filtering Topics: Organisation needs to find out the relevant matters that might affect the smooth
functioning of its matters. These matters affect the strategy, management and performance of the
organisation. To find the relevant matters, the organisation should consider the issues that affect the
relevant stakeholders, affect the future performance, and impact the organisational opportunity.  It can
be discussed in board meetings. Then the organisation needs to evaluate the importance of those
matters since all the relevant matters might not be material in the given time. The impact of matters on
value creation must be given priority while evaluating it. While filtering matters prioritise according to
their importance.

c)       Set the Reporting Boundary: After identifying and prioritising matters that can affect the
organisation’s ability to create value, they need to set the reporting boundary. The boundary should be
set for financial reporting as well as to determine risks, opportunities and outcomes. Organisations need
to evaluate the extent to set the boundary beyond the financial reporting boundary.

d)      Determining Disclosers: The final steps are to develop the integrated report according to the
international integrated reporting framework. However, organisations need to disclose the process of
creating the report. They need to disclose the process of setting parameters and techniques to identify
the matters. Likewise, the evaluation process of the matters should also be disclosed along with the
individual’s role responsible for the identification and prioritisation of material matters. The matters
identified in the earlier stages should be also disclosed according to Integrated Reporting Framework.

Each company should revisit and analyse their Integrated Reporting each reporting cycle to find any
limitations and to improve it in another report.

Review of Integrated Report Material 

Qantas Airways uses Integrated Reporting System to inform its stakeholders about how the organisation
creates value. Qantas maintains transparency and accountability on how it operates and creates values
for its shareholders. Likewise, they also inform about their strategy and methods to implement it. They
aim for long-term sustainability through fair reporting which in turn helps the communities or relevant
stakeholders. Qantas disclose the material information in their annual report. Likewise, they provide
information regarding their policies, procedures, planning to solve the material issues of the
organisation. They also provide key performance indicators of the material issues.
Qantas identifies the relevant matters on an annual basis through the proper assessment of their
operations. Qantas considers the issues that affect the relevant stakeholders, affect future performance,
and impact organisational opportunity.  They discuss the relevant matters in board meetings. Then the
organisation evaluates the importance of those material matters and the impact they can make on the
organisation’s value. 
Qantas reporting which centres around direct disclosures to investors is made in a predictable way with
the core values that support integrating reporting. Qantas follows the framework developed by the
International Integrated Reporting council which advise the substance regarding the report and how
data is introduced incorporates key concentration and future direction, availability of data, partner
connections, materiality, succinctness, dependability, consistency and likeness.
In the Annual Report 2020, Qantas Airways discloses the material risks relevant to its organisation.
Qantas airways follow the integrated reporting standards in their annual reporting. They have
performed a review of the operations. It details how the organisation operated in the given financial
year. It provides the financial performance of the given fiscal year.
Qantas' hierarchical design incorporates its board members. Board individuals generally comprise Non-
executive directors though they impart and work with Executive chiefs to satisfy the company’s strategy.
The board individuals are capable to keep up with straightforwardness and limit any business chances in
the association also offering more prominent benefits for their partners like investors, representatives,
clients, and so forth. They formulate a committee to analyse the organisational risk. The integrated
report of Qantas Airways also mentions their corporate governance. They have several committees that
look after the organisation’s smooth operations and they ensure the organisation’s commitment to
several international and national standards. The Board of Qantas Airways has developed a corporate
governance framework that includes several principles and policies on which the company operates its
business. So, from the analysis, the organisation follows the integrated reporting system and provides
relevant information that will help make better investment decisions for the potential investors.

Recommendations and Conclusion

 Since, Integrated Reporting provides information regarding an association’s strategic planning,

management, financial performance and possibilities that show the sustainability of the organisation.
Integrated reporting communicates the factors that might affect the company’s ability to improve itself
over a certain period. This reporting method provides various information for investors to make more
informed decisions regarding their investment. Information regarding organisation strategy and
prospects will help to allocate capital effectively which in turn will provide better long-term investment
returns. So, every organisation should use integrated reporting methods to genuinely inform the future
prospects of the organisation.