CIMA, IFAC and PwC combine forces to look at business model reporting

Accountancy Age recently reported that: “The Profession has joined forces in investigating financial reports reflection of the business model and how that can be included into future integrated reporting.” It notes that a background paper Business Model, which reviews business models and how they are represented in financial reports, was prepared for the International Integrated Reporting Council (IIRC) by the Chartered Institute of Management Accountants (CIMA), the International Federation of Accountants (IFAC) and PricewaterhouseCoopers (PwC).

The Executive Summary to the 23-page background paper explores and reconciles divergent approaches in business model reporting with the aim of reaching a common, widely-accepted definition of the business model for use in Integrated Reporting (<IR>). Specific implications for the development of the International <IR> Framework are summarized. A distinction is made between business model disclosures and other information, such as: external factors or context; capitals; governance; strategy and resource allocation; opportunities and risks; performance; and future outlook. These elements are highly interconnected as shown below.

To learn more, read the report Understanding Transformation: Building the Business Case for Integrated Reporting. It tracks the behavioural changes of businesses on their journey towards Integrated Reporting during the first year of the IIRC Pilot Programme. Also, refer to other developments on integrated reporting.