Integrated Reporting is having a profound impact on corporate thinking and reporting. Value is being assessed on the basis of the sources of value creation used by an organisation and not through a financial lens alone. In Chief Value Officer: Accountants Can Save the Planet, Mervyn King, a global corporate governance and reporting leader, challenges some of the systemic issues preventing organisations from managing in an integrated value-creation way. This is a presentation that we covered during our CFO forum meeting
Value Proposition canvas- Customer needs and pains
The changing role of the CFO
1.
2.
3. Once registered a company becomes an inanimate &
incapacitated person. The directors animate the company!
• No mind of its own
• Sovereign
• Immortal
• No owner of company
• Company owner of assets and
its own liabilities
• Tangible and intangible assets
4. Ownerless company
The ultimate and exclusive right conferred
by a lawful claim or title, and subject to
certain restrictions to enjoy, occupy,
possess, rent, sell, use, give away, or even
destroy an item of property.
11. Value creation
• Ethical culture and effective leadership
• Performance and value creation in a
sustainable manner
• Adequate and effective controls
• Trust, good reputation and legitimacy
17. Intangible Assets
• Long-term strategy to maintain value creation
• Company Reputation
• Company supply chain
• Supply chain code of conduct
• Stakeholder relationships
• How the company generates income and its impact
• Enhancement of positive impacts
• Diminishment of negative impacts
• Quality of governance
• Quality of risk management
• Internal controls
18. IR Content
• Organizational overview and external environment
• Governance
• Business model
• Risks and opportunities
• Strategy and resource allocation
• Performance
• Outlook
• Basis of preparation and presentation and in doing so, takes
account of: I General reporting guidance
The International <IR> Framework
The International Integrated Reporting Council (IIRC)
21. Chief Value Officer
• Guides board in prepping <IR>
• Guides decision making process of the board
• Integrated thinking – holding opposing ideas in
constructive tension
• Aid in maximizing corporate value over al 6
capitals
• Saving the planet