Integrated Reporting: It's Streamlined - But Will the Benefits Outstrip the Costs?

In his online report, prominent Australian shareholder activist Stephen Mayne listed 16 major businesses that were solvent when audited in 2010 but went bust shortly after. No wonder there's widespread dissatisfaction with traditional annual reports as indicators of an organisation's true position, shouted business pundits. However, this may all change next year with a new reporting format designed to meet the needs of a more sustainable, globalised 21st century world. "Integrated reporting" combines social, environmental and governance information with financial reports to tell a concise, coherent story about an organisation. Roger Simnett, an accounting professor at the Australian School of Business, who's on the international taskforce charged with creating a better reporting framework, says the big challenge in the switch to a more integrated approach is in convincing companies that its benefits will outweigh the costs.