The IFRS Foundation, on 25 May 2022, released a statement articulating the future path for integrated reporting. The statement is welcomed as it offers clarity on the way forward following the Value Reporting Foundation’s consolidation into the IFRS Foundation on 30 June 2022. The International <IR> Framework becomes the joint responsibility of the Chairs of the IASB and ISSB and their message is to carry on adopting the International <IR> Framework. To access the statement click here.

Some salient points from the statement:

  • The International <IR> Framework will be jointly owned by the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB).
  • The IFRS Foundation and the Chairs of the IASB and ISSB actively encourage the continued adoption of the International <IR> Framework.
  • The Chairs of the IASB and ISSB commit to a long-term role for a corporate reporting framework, incorporating principles and concepts from the current International <IR> Framework. A corporate reporting framework would provide guidance to companies on how to prepare an integrated report and/or otherwise support connectivity between the reporting required by the
  • IASB and the ISSB. This would enable connected, holistic and cohesive corporate reporting.
  • Market consultation will inform the timing and approach to the future development of the International <IR> Framework.

What should preparers do now?:

  • Continue as is using the International <IR> Framework for your integrated report.
  • Be aware that changes will be happening that will affect your integrated reports in the future so it’s important to keep up-to-date.
  • Ensure your sustainability information and reporting systems are up and ready for the new standards.
  • Participate in the public comments process on exposure drafts and consultation papers through the IRC of SA’s comment letters and direct submissions.

The IRC of SA will:

  • Keep members up-to-date on international developments with email communications and webinars.
  • Develop FAQs to guide preparers on changes to integrated reporting and how the new international sustainability standards can fit with local reporting and governance practices.
  • Develop comment submissions on exposure drafts and consultation papers to ensure South Africa’s voice is heard.
  • Continue our participation in the IIRC Council, which serves as an advisory body to the IFRS Foundation Trustees on integrated reporting and connectivity.
  • Collaborate with the King Committee and others in guiding preparers in meeting international requirements layered with local practices and requirements.