Babc 11 Finanl Report

BABC001

Academic and Business Communication

Assignment 3: Report

To be completed by the student upon submission:

WORD COUNT (excluding TOC, Executive Summary and reference list):    

                                                    …………1268…………..

Turnitin percentage:   ………………….

Executive Summary        

1        Introduction        

2        Main purpose & key benefits of integrated reporting        

2.1        Main purpose of integrated reporting        

2.2        Key benefits of integrated reporting        1

3        IIRC Guiding Principle & Content Element for Financial Service industry        

3.1        Guiding Principle: Reliability and completeness        

3.2        Content Element: Risks and opportunities        2

4        Evaluation of Insurance Australia Group Limited Annual Report 2017        2

4.1        Evaluation of how effectively IAG uses the Guiding Principle F        2

4.2        Evaluation of how effectively IAG uses the Content Element D        3

5        Conclusion        3

6        Reference        4

Executive Summary

Integrated reporting can help companies to present value creation process through providing nonfinancial and financial information in the annual report. Therefore, the report will focus on the main purpose and key benefits of integrated reporting. The selected Guiding Principle and the Content Element from the International IR Framework will also be explained and related to the Financial Service industry. In addition, the Insurance Australia Group Limited Annual Report 2017 will be evaluated on the effectiveness of using the Guiding principle and the Content Element. The report is based on several reliable sources that includes journals, organization publications and an official website. Through evaluation, the annual report of Insurance Australia Group effectively uses the selected Guiding Principle and Content

Element. In conclusion, integrated reporting can be a helper for companies to show information of overtime value creation in annual reports. Based on the selected Content Element, the 2017 annual report of Insurance Australia Group can be improved by adding more information of opportunities.  

1. Introduction

Stakeholders, investors and other interested people generally get information about the activities and financial performance of a company through its annual report. Traditional way that the organizations make annual reports is debated because the definition of value creation and capitals in annual reports becomes different. Integrated reporting can be the solution to the problem. Therefore, this report will identify the main purpose and the key benefits of integrated reporting. The report will explain also one Guiding Principle: Reliability and Completeness and one Content Element: Risks and Opportunities from the international Integrated Reporting Framework in relation to the Financial Service industry. The way that they help the companies in the industry to achieve the main purpose of integrated reporting will be illustrated as well. Moreover, the 2017 annual report of Insurance Australia Group will be evaluated on its effeteness of using the selected principle and element. In my opinion, the corporation performs well in making the annual report based on the chosen principle and element.

1. Main purpose & Key benefits of integrated reporting

2.1 Main purpose of integrated reporting

According to KPMG (2012, p. 4), integrated reporting mainly aims to tell the providers of financial capital the organizations’ abilities of creating value. To achieve the purpose, integrated reporting integrates the information of the strategy, governance and performance of a company (Busco et al. 2013, p. 8). Providing insights of the financial, manufactured intellectual, relationships, human, social and natural capitals also contributes to the main purpose of integrated reporting (Busco et al. 2013, p.8). The reason is these capitals play very important roles in the annual report because they are the basis of integrating information in integrated reporting (IIRC 2013, p. 44).

2.2 Key benefits of integrated reporting

Compared to traditional annual reports, integrated reporting has various benefits. Busco et al. (2013, p. 8) states that integrated reporting can improve integrated thinking which helps companies consider all factors affecting value creation. For example, integrated reporting not only figures out the capital belongs to the company, but also focuses on the capital that the company can affect, which is not included in conventional annual report (IIRC 2013, p. 37). IIRC (2013, p. 35) also argues that integrated reporting can help companies make a better presentation for their responds to stakeholders’ needs and interests. In terms of decision making, integrated reporting can offer specific information about sustainable value creation to help the companies make decisions (Busco et al. 2013 p. 8).