Value Creation through Integrated Reporting
Bridging authentic, comprehensive and meaningful information for better performance and greater impact
KUALA LUMPUR, 25 September 2018 – More than 100 Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and senior management executives participated in important conversations on the future of corporate reporting at Deloitte Malaysia’s breakfast talk on ‘Progress through Integrated Reporting (<IR>)’ today.
Aimed at helping board members understand the needs of organisations and offering guidance on <IR> implementation, the session provided participants with updates on <IR>, an insight into the Malaysian landscape in <IR>, and discussed how the process and reporting methods can create progress for organisations, providing a clearer, forward-looking picture of a business’ value creation over time.
“<IR> has become a key aspect for both listed and non-listed entities. Malaysia joins a long list of countries that are adopting <IR>, and we at Deloitte recognise the importance of providing a clearer, forward-looking picture of a business’ value creation over time” said Izzad Shamsudin, Deloitte Malaysia Audit & Assurance Partner. He said, “Knowing the ins and outs of the methods and framework will be essential in adopting <IR>. Vice versa, we also hope that we will be able to gain a better understanding of what you need and offer guidance where we can, moving forward.”
Operating in a world of significant change, today’s businesses have to keep up with game-changing technologies, complexity of standards, economic uncertainty and detailed processes. With an already available <IR> framework, companies can use it to start their journey towards enhancing business accountability and stewardship, and support integrated thinking and decision making. <IR> brings together key information about an organisation's strategy, governance, performance and prospects in a way that reflects the commercial, social and environmental context within which it operates.
According to Nor Fadhilah Mohd Ali, Group CFO of Telekom Malaysia Berhad, “An Integrated Report is important as it ensures transparency in reporting, as well as a coherent narrative to our stakeholders from beginning to end; from strategy and resources up to the business models we set based on the strategy at hand, be it financial or non-financial information.”
From an investor’s point of view, “The more information obtained from a company, the better. That said, the quality of information provided in the integrated report reflects the company and is very important as it helps investors make an investment decision. At present, investors tend to focus on financial aspects alone. It is time for us to educate fellow investors to incorporate the non-financial side of things and also into our investment decisions.” said Azam Yahya, Head of Equity Research, Employee Provident Fund Malaysia.
<IR> is not only about reporting; but encompasses integrated thinking. The multitude of benefits associated with <IR> includes the promotion of better identification of risk and opportunities, creation of value for stakeholders through identification and measurement of non-financial factors, and a clearer articulation of strategy and business models, amongst others.
Also sharing his views at the panel was Malkit Singh Maan, Group CFO of BIMB Holdings Berhad who added, “Banks look beyond financials for approving financing facilities. Additional emphasis has been placed on non-financial measurements, such as impact on the community, environment and stakeholders.”
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About Deloitte Southeast Asia
Deloitte Southeast Asia Ltd—a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam—was established to deliver measurable value to the particular demands of increasingly intraregional and fast-growing companies and enterprises.
Composed of 320 partners and more than 7,700 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd., combine their technical expertise and deep industry knowledge to deliver consistent, high-quality services to companies in the region.
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About Deloitte Malaysia
In Malaysia, services are provided by Deloitte PLT (LLP0010145-LCA) (AF0080), a limited liability partnership established under Malaysian law, and its affiliates.