In a report commissioned by the B20, the business forum that advises G20 governments, the six largest global accounting networks¹ have endorsed <IR> as a key innovation that will make corporate reporting more conducive to long-term investment.
The report highlights the urgency with which policymakers must tackle the structural gap in infrastructure investment, estimated to be US$500 billion annually, and says that corporate reporting has a vital role to play in refocusing investment horizons in favour of longer-term returns, reversing the current trend towards short-termism. The report will help to shape discussions prior to the B20 Summit in Sydney on 16-18 July, an event that will agree and prioritise policy recommendations to heads of government later in the year.
This is the latest significant endorsement of <IR> and is consistent with the IIRC’s approach to encourage the removal of barriers to corporate reporting innovations, and create a regulatory environment in which <IR> can flourish.
The report says that <IR> has "the potential to support better investment evaluation models [...] and hence better investment decisions with a more forward-looking time horizon." It calls on G20 Finance Ministers to "assess and address any practical, legal or statutory barriers to improved corporate reporting [...] in order to make corporate reporting more conducive to infrastructure and other long-term investment."
The accountancy firms are asking the B20 to call on G20 leaders to "Encourage corporate reporting innovations and initiatives that provide investors with a longer-term and broader perspective on shareholder value creation to complement the historical financial performance and current financial position perspective provided by financial statements."
Taken from the latest IIRC press release
http://us4.campaign-archive1.com/?u=b36f6aeef75cea67e62812844&id=39e250dc0a&e=a22a51d8a9#key
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