IR can help investors take a longer term view of shareholder value

Businesses and investors should welcome the opportunity to focus their reporting on the key drivers of business value

KPMG welcomes the International Integrated Reporting Council’s Integrated Reporting (IR) Framework - published today - as an important step on the journey towards better business reporting.

According to KPMG, IR is an opportunity to align business reporting more closely with shareholder value that could ultimately support a more stable business and investment environment.

IR attempts to capture the practices of companies in a comprehensive manner to differentiate companies with sustainable practices from opportunistic players. It addresses a wide range of areas such as business model evaluation of companies, and how companies impose responsible behaviours onto their suppliers to ensure that the entire supply chain are free from poor practices.

Mr Ong Pang Thye, Head of Audit, KPMG in Singapore said: “It is time to move business reporting beyond a mere discussion of past financial performance. IR can play a key role in driving better business reporting.

“Businesses can struggle to communicate their progress in developing and protecting their prospects through traditional reporting. The final version of the framework can prove an effective tool for businesses looking to shift their reporting focus from short-term financial performance to long-term shareholder value creation.”

KPMG also expects that the framework to be most attractive to companies as a means for developing their existing narrative reporting, rather than as a basis for an additional, standalone, integrated report.

Added Mr Ong: “Building narrative reporting around the business model to explain how the business has been developed should be especially attractive to management teams hoping to expand their investor dialogue beyond short-term earnings.”

To read more about KPMG’s views on ways in which organisations can develop their reporting to support a more effective dialogue with their investors, please visit www.kpmg.com/integratedreporting

About KPMG in Singapore

KPMG in Singapore is part of a global network of professional services firms providing Audit, Tax and Advisory services. Our website is located at kpmg.com.sg

The independent member firms of the KPMG network operate in 156 countries and have more than 152,000 professionals worldwide. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

For further information please contact:

Leow Si Wan
Assistant Manager, Marketing & Communications
Tel: +65 6507 1541
e-Mail: siwanleow@kpmg.com.sg

Kelvin Lee,
Associate Director, Marketing & Communications
Tel: +65 6507 1534
e-Mail: kelvinlee1@kpmg.com.sg

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