To propose introducing Integrated Reporting, submit a report to the Board of Directors.

A.

The International Integrated Reporting Council (IIRC) created the IR> Framework at the
beginning (previously the International Integrated Reporting Committee). The IIRC was
founded in August 2010 with the intention of creating an internationally recognized
framework for a process that results in an organization's communications about value
creation over time.

An expanding corporate reporting system includes integrated reporting. Comprehensive

frameworks and standards enable this system, which handle measurement and disclosure in
regard to all capitals, as well as proper legislation and effective assurance. Although
integrated reporting is in line with recent innovations in financial and other reporting, it
differs from other reports and communications in several respects.

An integrated report explains how a firm gain, loses, or preserves value over time. Value is
not created, preserved, or deteriorated exclusively by or within a company. It is influenced by
its surroundings in the following ways:

 Stakeholder relationships were developed.

 Completely dependent on a range of supplies.

The term "Integrated Reporting" does not refer to the same thing as "combined reporting."
Corporate reporting, according to the IIRC. As a result, an integrated report does not integrate
the financial statements or annual report with any other corporate responsibility or
sustainability report. Rather, it's "a succinct explanation of how an organization's strategy,
governance, performance, and prospects, when seen in the context of its external
environment, contribute to the generation of value over the short, medium, and long term."
(Deloitte, 2013)
The basic purpose of IR is to increase accountability and stewardship of tangible and
intangible capitals while also raising awareness of their interdependencies. In IR,
organizations should illustrate how the governing structure has used its resources to identify
and address these challenges, which should be incorporated into the company's strategy.
Users can make informed judgments based on the possibility of an organization's long-term
viability because IR has such a big influence on corporate behavior through assessing the
positive and negative externalities that organizations encounter. The IR framework makes it
easier for preparers to tell a meaningful and credible story about an organization's value
creation.
An Integrated Report's Reporting Boundary

. There are two considerations to considering the organization's reporting boundary:

(Deloitte, 2013)
Given on many of these low levels of reporting, it's clear that Malaysian corporations
aren't using internal reporting very much. In Malaysia, the government may need to
control the application of IR, but IIRC's attitude is that governments should not
regulate IR because it must be driven by the market. As a result, perhaps governments
should take the lead by implementing IR in the public sector and government-
affiliated businesses. The obstacles of IR can be lessened if organizations pay
attention to the attributes needed to build a powerful human capital culture, as the
issue of trustworthiness, which has been raised by IR critics, can be addressed and the
issue of "form over substance" avoided. Changes such as the introduction of new
disruptive technologies, shifts in consumer needs, desires, and behavior, shifts and
interconnectedness of multiple supply and distribution chains, shifts in stakeholders'
influence in the organization, the need for specific skilled workforce, employment
trends, and population and geo-political changes are all revealed by integrated
thinking in organizations. Organizations must connect the dots of strategy, risk,
business model, and KPIs to give useful information to stakeholders by linking links
between capitals, inputs, outputs, results, and impacts in order to be sustainable in the
long run and robust to strive and survive.
B.

The Content Elements are intertwined and do not contradict each other. The order in which
the Content Elements are presented below is not the only way they could be sequenced
because they are not intended to serve as a traditional framework for an integrated report,
with information about them appearing in a predetermined sequence or as isolated,
standalone sections. An integrated report's material is organized in such a way that the links
between the Content Elements are obvious. The substance of an organization's integrated
report will be determined by its specific circumstances.

According to a PwC survey of the top 30 Bursa Malaysia companies in 2014, 90% of
responders offer some insight into the market dynamics that are driving their growth.
Although Bursa Malaysia expects all companies to submit risk management along with
internal control statement, just 27% acknowledged their key risks. 90% of corporations
provided a high-level strategic vision of where they wanted to go, but only 33% included
information on their strategic priorities in their yearly report. Only 20% of respondents, on
the other hand, linked it to strategic actions made in response to the trends. Only 40% of
respondents addressed sustainability in their overall company plan, and only 40% of
respondents precisely specified their key performance indicators, with only 40% of
respondents connecting KPIs to their strategy.

The following eight Key Content Elements must be included in an integrated report:

Organizational
overview and
external
environment.

Basis of
preparation and Governance
presentation.

8 Key Content
Outlook. Elements of an Business model.
 (Deloitte, 2021) Risks and
Performance.
opportunities

Strategy and
resource
allocation.
C.

Integrated thinking results in a periodic integrated report on value creation over time for an
organization, as well as related communications regarding value creation aspects.

Organizations that do not execute IR will pay a price in the global marketplaces. According
to Barth et al. (2017), higher-quality IR is linked to better financial outcomes. When a
corporation shares information about its future, it should contain detailed financial forecasts
as well as industry trends, and the company's attempts to address those trends to gain insight
into how integrated thinking is investigated and exploited inside businesses, an empirical
study was conducted to look into specific components of IR practice, such as a role and
usefulness of internal auditing in the context of integrated reporting. (Singh et al. , 2019)

Integrated reporting has numerous benefits, both internally and externally:

 Internal procedures are improved, which leads to a better understanding of the

business and a faster decision-making process.
 Getting your organization to think more broadly.
 To create value for stakeholders, non-financial aspects are identified and measured.
 Identification of risks and opportunities is improved.
 The strategy and business model are more clearly defined.
 A single report that is simple to read, comprehend, and understand.
 Directly linking non-financial performance to the business. (Deloitte, 2017)

The use of an integrated approach increases the accessibility of financial reporting for
investors, and IR fosters critical trust among investors and customers, minimizing investment
risk. It is also obvious that there is a substantial correlation between IR practice and increased
firm financial success. (Singh et al., 2019)
A company's responsibility should be to create value responsibly in the short, medium, and
long term. This necessitates connectivity across a company's vast array of resources and
contacts in order to generate value.

D.
The key obstacles in the voluntary adoption of IR include ensuring ease of acceptance and
relevance to mainstream corporate and investor groups, as well as examining the considerable
risks and potential of IR and how IR may be integrated into existing reporting standards.
(Izma, 2014).
 (Deloitte, 2017)

References

I. Deloitte. (2013). Heads Up — IIRC releases the International Integrated Reporting

<IR> Framework. Iasplus.com. Retrieved 4 November 2021, from
https://www.iasplus.com/en/publications/us/heads-up/2013/ir-framework.
II. Deloitte. (2021). Integrated Reporting Framework (<IR> Framework). Iasplus.com.
Retrieved 4 November 2021, from
https://www.iasplus.com/en/resources/sustainability/iirc.
III. Deloitte. (2017). ACCA report highlights benefits and challenges of adopting
Integrated Reporting. Iasplus.com. Retrieved 4 November 2021, from
https://www.iasplus.com/en-gb/news/2017/04/acca-integrated-reporting.
IV. Izma, N. (2014), Integrated reporting-the next wave. Accountants Today. Vol.27 (2).
pp. 8-10.
V. Singh, J., Sadiq, M., & Kaur, K. (2019). Retrieved 4 November 2021, from
https://www.researchgate.net/publication/337271898_Integrated_Reporting_Challeng
es_Benefits_and_the_Research_Agenda/stats.