THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF BANGLADESH

Members’ Conference
on

INTEGRATED REPORTING:
Challenges and Opportunities

Anwaruddin Chowdhury
Member Council & Past President ICAB,
Director CAPA Board and
Member IPSASB CAG

Dhaka, 30 April 2017

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Regulators, Standards Setters & Professional Bodies
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 PREAMBLE

 ALLAH SWT’s Revelation of the holy Quran upon Prophet Muhammad SAW
 Religious, Philosophical Perceptions of Knowledge – Accounting and Reporting
 GATS-WTO Regime Recognition (1996)
 SAARC Islamabad Declaration (2004)
 Corporate Frauds of New Millennium – (Enron) ?
 Role of Auditors and Rating Agencies (Anderson) ?
 Strengthening CG Practices - (Regulatory Oversight)
 Recent Developments – Impact on CR and CG / FR & AP
 Global Financial Crisis/Euro zone Debt Crisis
 Regulatory Failure – Sub-prime Lending/Derivatives
 G-20 Summit (Pittsburg 2009) Declaration – Reporting Standards
 Critical Nature of Financial Markets - Role of Accountants/Rating Agencies
 Convergence to Globally Harmonized High Quality Accounting/FR Standards
 Important Role of Accountants - Market Confidence, Global Recovery
 Lessons Learnt & Way Forward
 UK Brexit Impact – Economic, Trade and Professional Implications

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 IR - BACKGROUND SCENARIO

Evolving Factors
 Globalization Induced Interdependencies in Economies, supply
chains and global consumption, phenomenal levels of technological
advances and innovations
 Actual and prospective resource scarcity (Energy and Food security)
 Environmental concerns (climate Change, ozone, CO2 emissions )
 Legal Status of Quito Protocol / Rio20+Enviornment Summit-2012
 Growing policy issues/Response to financial governance and other crises
 Enhanced expectations of corporate transparency and accountability
Resultant Impaction
 Major changes in business models aimed at value generation
 Measurement, recording and reporting of activities, reflecting
appropriate resource management for sustainable development
 Provision for increased stakeholder value information GRI / IR
 IR is designed to enhance & consolidate existing reporting practices
to move towards a reporting framework the provides the information
needed to assess organization sustainability /value in the 21st century.
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 CONCEPTUAL DIMENSIONS

 Topicality, Significance and Dynamics of the CPD Conference Theme

 Financial Reporting/Audit and Assurance/ CG/ EG
 Vision-Leadership-Innovation-Sustainability
 Accountants as Change Agents/ Innovation Catalysts
 Vision/ Thought Leadership/ Governance/ Ethics
 Evolving, Enhanced, Diverse Strategic Role of Accountants
 Visionaries /Corporate Leaders/ Strategists/ Technologists
 Economic/ Development Consultants/ Policies Formulation
 Ensuring Sustainability of Business and Development Process
 Sustainable Development Warrants SR >>>IR (VRM)
 Impact of Climate Change and Global Warming –CO2/Ozone =Mitigation
 Green Environment/ Green Reporting / Green Banking/ Green Taxation
 IFAC (PAIB)-Accountants Value Generators/Enablers/Preservers/Reporters
 Value Reporting Models : Sustainability Reporting/ Integrated Reporting
 Enhanced Diversified/Specialized Role of Accountants - (eg Carbon Trading)
 FROM PACIOLI (DE) TO KING <IR>

 Luca de Pacioli generated a method (double entry system of book-

keeping), through which a business and its performance could be
evaluated as a means of making its owners accountable.

 FINANCIAL REPORTING (International Standards)

 While Pacioli’s focus was purely financial, Professor Mervyn King

spearheaded a multi-capital approach to reflect how value is generated
in a knowledge-based resource constrained global economy. VR = IR

<Modified from Paul Druckman, Financial Management, March 2016>

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 POSITIONING INTEGRATED REPORTING

Overall
Financial International Sustainability Transparency Integrated
Performance
Performance Standards Reporting Reporting
Story

INTEGRATED THINKING

Resulting in: Sustainable organizations, financial

markets, & economies

Source : IFAC
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INTEGRATED REPORTING From INTEGRATED THINKING

Value Reporting for Sustainable Development = Integrated Reporting

Source : IIRC

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 IFAC VALUE GENERATION MODEL

+ > >>
Key
Public Interest Key Value- Key Key Societal
Input Resources Adding Outputs Outcomes Benefits
Activities

Our Values: Expertise, Integrity, Transparency

Source : IFAC

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NON-FINANCIAL ASSETS (INTANGIBLES)—THE MOST
IMPORTANT DETERMINANTS OF VALUE

Measuring & managing intangibles and connectivity

between financial and non-financials

Source : IFAC
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 IFAC AND INTEGRATED REPORTING <IR>

 IFAC and IIRC Strategic Partners – (IFAC - IIRC MOUs)

 The global profession’s commitment to <IR> as a means of:
 Enhancing corporate reporting; and
 Enabling resilient and responsible organizations
 IFAC’s public interest mandate - Focus on profession’s contribution
to societal objectives
 Addressing the problems of the corporate reporting system

GENERATING VALUE WITH INTEGRATED THINKING

 Sustainable organizations and societies ultimately depend on a changing

mindset, purpose, and approach based on integrated thinking
 IFAC Publication November ‘15:
 Vision and Framework for Integrated Thinking
 Enhances the relevance of finance professionals and links to business
partner agenda
 Focus on the information needed for decisions value generation
Source : IFAC
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INTEGRATED REPORTING – COMMUNICATING VALUE GENERATION
 Integrated Reporting an Opportunity to
 Generate value (internal benefit)
 Tell the story (external benefit)
 Research of IIRC’s Pilot Programme Companies
Realizing the Benefits, The Impact of Integrated Reporting
 71% - strategic benefits from <IR>, the most important a change in
conversations between the Board and Management
 79% reported improvements in management information and decisions

IFAC<IR> IMPLEMENTATION
 <IR> is a journey; it will take more than one reporting cycle
 Linked to strategy- Provide momentum
 <IR> should not be seen as just additional reporting
- “Embed integrated thinking in the organization”
 Don’t think of the Framework as a list of requirements
- “Tell your own, unique, value generation story”

<IR> NETWORK FOR PAOS

 A profession engaged and connected
 Exchanging ideas, knowledge and experiences
 Sharing resources - Key staff and volunteers
 How: LinkedIn - Web based resources, other means of networking
Source : IFAC 12
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 IIRC & INTEGRATED REPORTING

IIRC Background
 Formation- August 2010, aimed at developing a globally accepted Framework
for a process that results in communications by organisations about value
generation over time. Comprises of representation from corporate,
investment, securities, regulatory, standard setting , accounting, academic
sectors and civil society.
 Restructured - Nov 2011. Chair: Prof Mervin King
CEO: Paul Druckman/Richard Howitt
IIRC Vision
 World in which IT is embedded within mainstream business practice in the
public and private sectors, facilitated by IR as the corporate reporting norm.
The cycle of IT and IR, resulting in efficient and productive capital allocation,
will act as a force for financial stability and sustainability.
IIRC Definition of Integrated Reporting and Integrated Report
 <IR> is a process founded on integrated thinking that result in a periodic
integrated report by an organization about value generation over time and
related communications regarding aspect of value generation.
An integrated report is a concise communication about how an organization’s
strategy, governance, performance and prospects, in the context of external
environment, lead to a generation of value in the short, medium and long term.13
 IIRC & INTEGRATED REPORTING

IIRC Objective
 Provide framework for a new reporting model to enable organizations to
provide concise communications to broader stakeholder groups about their
values (strategies, governance) generated in the short, medium and long
term, linked to financial performance. Framework published Dec 13.
IR Framework
 Provide fundamental change in the way in which organizations are managed
and report to stakeholders. IR supports “integrated thinking” and “integrated
decision making.” Integrated Thinking (IT) described as “active consideration
by an organization of the relationships between its various operating and
functional units and the capitals that the organization uses or affects”.
IR Objectives
 Improve quality of information; Provide more cohesive, efficient approach to
corporate reporting; Enhance accountability and stewardship; support IT,
decision making and actions focused on value generation
IR Fundamental Concepts
 Value generation for organization and for others; The Capitals (resources
and relationships); The Value generation process. 14
 IR OVERVIEW - BANGLADESH POSITION

 Global Economic Challenges >>>Opportunities

 MDGs SDGs, Macro Economic Stability and Growth Impact
 SR IR for Public and Private Sector Business Sustainability
 Envrn/Social /Govrnce Issues = Factory Conds, Safety Stds/Child Empl
 Recent Events – Gas Fields/ RMG Factories Disasters (Fire/Subsidence)
 Green Reporting, Green Finance, Green Taxation
 Transformation of Business Operations and Resource Management
 Corporate Reporting Models - Value Reporting /Sustainable Development
 IR Framework – Conceptualization/Definitions
 Corporate Reports – Current Status and Trends
 Govt Development Strategies-Commitment to Sustainable Growth
 Green Banking Guidelines Issued – Green Reporting Mandated by BB
 No Legal Mandate for Integrated Reporting or Sustainability Reporting
 IR Practices Virtually Non-Existent / SR Limited Applications
 Regulatory Directives /Voluntary Practices of CG, CSR, Green Reporting.
 Awards for Financial Reporting/CG/CSR & Environment Reporting
 Comprehensive Financial Statements & Disclosures - Economic,
Governance , Social , Environmental (Sustainability) Issues
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 IR - PUBLIC SECTOR APPLICATION PERSPECTIVES

 Sustainability and Integrated Reporting are equally applicable to Public and

Private Sector Entities - Financial and Corporate sectors . SMEs and NGOs ?

 Facilitate Strategic Sustainable Development of Public Sector Organizations

 Enable Optimum Deployment, Utilization of Public Resources for Sustainable

Development

 Render Holistic Meaningful Information to the Govt for the Public Interest

 Enable Effective Monitoring & Evaluation of Govt /Public Expenditure

 Provide Enhanced Transparency of Information (Financial /ESG) and

Accountability in Government and Corporate Decisions

 Reduce Corruption /System Loss/ Inefficiency through Effective SR/ IR

 Promote Investment , CMD, Industrialization, Exports and GDP Growth

 Develop Requisite Skills for IR - Knowledge Sharing Between OCAG-ICAB

 SCOPE and SPEMP B – PPP for Improved Audit Quality Assurance – Perspectives
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 CORPORATE REPORTING MODELS
VALUE REPORTING = SR / IR

 Accounting for Sustainability-IFAC Sustainability Framework 2011 Position

Professional Accountants for Long-Term Sustainable Value Generation
 Sustainability – 3 Important Dimensions: a) Economic Viability, b) Social
Responsibility, and c) Environmental Responsibility – Interconnectivity
 Sustainability – 3 Perspective: Business Strategy, Operations & Reporting
 GRI SR Std Practice for SD- Triple Bottom Line Approach = Economic, Social &
Environmental Performance = Reporting Adds Value and Achieves SD
 SR Supporting Investor Needs Through ESG Factors : Environment/ Social/
Governance Considerations : Facilitate Sustainability & Organizational Success by
Engaging All Stakeholders & Enhance Performance of Companies by Good Governance

* Environmental - Impacts on Living/Non-Living Systems, Risks & Performance

Related to Inputs (Water, Material, Energy) and Outputs (Emissions, Wastes);
* Social - Diversity, Human Rights, Training & Development, Consumer Protection
Health, Safety Standards ;
* Governance - Board Effectiveness & Composition, Term, Remuneration & Conduct of
Directors, Compliance, Legal & Litigation Issues (CG considerations)

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 CORPORATE REPORTING MODELS
VALUE REPORTING = SR / IR

 Role of IFAC (PAIB)/ GRI/ IIRC/ Other Institutions (Prince A4S Project)
 MOU Between IIRC and IFAC of September 2012 – Vision for Evolution of
Corporate Reporting for 21st Century Indicating Important Role of <IR>.
Describes Role & Purpose of IR, Acknowledgment, Commitments, Consultation, Intel
Property, Confidentiality, Costs, Publicity, Institutional Arrangement, Contact, Status,
Validity, Revisions, Assignment , Governing Law and Jurisdiction Coverage
 MoU Definition of <IR> = Means by which Companies Communicate with Existing
and Potential Investors and other Stakeholders about the way in which their Strategy,
Governance, Performance and Prospects Lead to Value Generation, Preservation and
Reporting over short medium and long term perspectives.
 GRI Sustainability Reporting Framework - Key Features : a) Comprehensive
Scope, Covering Main Sustainability Issues, b) Continuous Development, Reflecting
User Experience, c) Multi-Stakeholder Framework & Governance Model, d) Universal
Relevance, Including for Private Sector, Public Agency and Civil Society Organizations
 GRI – SAFA MOU 2011
 Status on SR/IR Application in SAARC Countries
 SAFA/ CAPA Member Bodies /PAOs– Status and Initiatives
 Integrated Reporting – Elucidation (Diagrams)
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SUSTAINABILITY REPORTING
Triple Bottom Line Approach
(Economic - Social – Environment)

Source : Prince of Wales Project on A4S, UK

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 INTEGRATED REPORTING

IR = FR + SR (Environment-Social-Governance)

Source : ICAB (AC)

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 INTEGRATED REPORTING
Connecting Financial and Non-Financial
Information to Overall Business Model

Source : Earnest & Young

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IR PERSPECTIVES -PERFORMANCE & VALUES

Source : KPMG International

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GLOBAL STATUS OF INTEGRATED REPORTING (2012)

Source : GRI, July 2012

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 GLOBAL STATUS OF INTEGRATED REPORTING (2016)

Over 1,000 Over 50% of CEOs, CFOs and COOs

are moving towards <IR>
organisations do <IR>

And over 35% say they will

750 participating in <IR> Networks worldwide

182 Businesses
in Japan do <IR>

Source : IFAC (PAIB and IR Lead)

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 GLOBAL STATUS OF INTEGRATED REPORTING

UNITED KINGDOM:
 The Strategic Report, together with the Financial Reporting Council’s Guidance,
is consistent with Integrated Reporting
<IR> should not be seen as more reporting
 We use different words in the UK. Strategic Report, not Integrated Report, but
we are on the same journey with the same purpose. The principles in a UK
strategic report are consistent with an integrated report. And we look forward
to continuing to work closely with the IIRC as it pursues its mission in the
years ahead. (Stephen Haddrill, CEO, FRC, UK)

NETHERLANDS:
 More than a third of Dutch listed companies are working towards <IR>
 Eumedion, which represents institutional investors’ interests, called on Dutch
companies to take concrete steps towards <IR>
THE USA:
 Harvard Business School research concluded that “more <IR> is associated
with a more long-term investor base”
 Businesses adopting <IR> include PepsiCo, Microsoft, GE and Prudential
 Larry Fink, CEO, Black Rock called for CEO’s to communicate their
strategic framework for long-term value generation
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 GLOBAL STATUS OF INTEGRATED REPORTING

BRAZIL:
 Brazilian Stock Exchange BM&FBOVESPA encourages listed companies to produce
integrated reports on a ‘report or explain’ principle.
 The <IR> network in Brazil has over 300 participants
SOUTH AFRICA:
 Companies listed on the Johannesburg Stock Exchange have been producing
integrated Reports since 2010
 The Integrated Reporting Committee of South Africa endorsed the International
<IR> Framework in 2014.
JAPAN:
 Around 200 companies adopted Integrated Reporting
 Japan's Ministry of Economy, Trade and Industry has endorsed <IR> as a means
of communicating the long-term value creation proposition of companies.
SINGAPORE:
 The Singapore Stock Exchange produces an integrated report
 The Singapore Accountancy Commission is working with the Ministry of Finance
to set out a route towards Singapore’s adoption of <IR>
MALAYSIA:
 Malaysian Prime Minister said, “..the Securities Commission, together with
professional bodies and other stakeholders, is exploring avenues to enhance
the quality of information available to the capital market. One of the options
being considered is the eventual introduction of <IR> 26
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 GLOBAL STATUS OF INTEGRATED REPORTING

 SAARC COUNTRIES :
 The Indian <IR> Lab led by the Confederation of Indian Industry and
comprised of 9 leading companies and support from ICAI, Cost Accountants
and Corp Secretaries, is engaged in <IR> research and dissemination,
leading to production of IR in industries and corporate sectors
 SEBI has provided a vision and momentum is building
 India - SR Mandatory for Listed Companies - Detailed National Guidelines
on Social, Environmental & Economic Responsibilities of Business Issued by
Ministry of Corporate Affairs -Elucidating on Sustainable Development and
Transparency Imperative, Overview of SR Link to GRI Framework. SR
Awards by ICAI & ICA Cost from …... IR Awards?
 Pakistan - Extensive Application of SR (Not Mandatory). SR Awards Jointly
Organized by ICAP/ICMAP from 2011. IR Awards ?
 Sri Lanka - Mandatory Application of SR. Increasing IR Application (Not
Mandatory). SR Awards by CA SL/CMA SL for Several Years……….
 Nepal - Voluntary Application of SR . IR ? Awards Not Introduced
 Bangladesh - Increasing Voluntary Application of SR (Financial Sector
Entities, Multinationals). IR - Thought Process ! (Appendices). ICAB
Initiatives for SR/ IR Awards. Green Banking/Reporting Mandatory for
Banks/CG and CSR Reports widely Published 27
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 SAFA INTEGRATED REPORTING AWARDS

 SAFA has been giving Awards for Integrated Reporting category since the last
couple of years, as an integral component of SAFA annual BPA Awards.

 The recipients for the SAFA Integrated Reporting Awards 2016, for Corporate
Reports 2015 are as follows:

Diesel & Motor Engineering PLC : Sri Lanka Winner

Mercantile Investment & Finance PLC : Sri Lanka First Runner-Up
L B Finance PLC : Sri Lanka Second Runner-Up
IDLC Finance Limited : Bangladesh Merit
Fauji Fertilizer Company Limited : Pakistan Merit

INTEGRATED REPORTING - PAOs

 CPA Australia - First Professional Accounting Body to Produce IR, Independently

Assured and Level Checked by GRI
 ACCA (UK) –Has been preparing Integrated Report, as its principal annual
Corporate Report since 2013

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 IR IMPEDIMENTS / CHALLENGES

 Lack of Awareness of Value Reporting & Benefits

 Conservative Mindset Averse to Changes/ New Initiatives

 Increased Cost of Doing Business for FIS and Corporate

 No Legal Mandate (Limited Regulation) for IR Practice

 Non Availability of Relevant Computational Data

 Lack of Value Reporting Framework – (SR Guidelines issued by India)

 Lack of Established Standards or Disclosures for IR

 Inadequate Knowledge, Technical Skills & Professional Competence

 Lack of Measurement Parameters for Non Financial Elements

 Weak Governance Models , Particularly in Private Companies & NGOs

 Inadequate Focus on Conservation & Environment Friendly Technologies

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 IR CHALLENGES

 Developing Adequate Awareness for Value Reporting (SR/IR)

 Mindset Changes - Profession , Business , Regulators and Civil Administration
 Major Change for Accountants and Corporate Reporting
 Absence of trained CAs/ Competent Professionals
 Formulating Parameters for Measuring Non Quantifiable ESG Aspects
 Complexity for Measuring and Quantifying Non Financial Metrics and Integrating
them with Financial Performance - Inconsistent Diversity
 Devising Value Reporting Guidelines for NGOs, Public and Private Sector Entities.
 Acquiring Professional Knowledge, Skills and Competence for Value Reporting
 Financial Resources/Donor Support for Conversion to Value Reporting Practices
 Developing Due Diligence and Good Governance Strategies for IR Practices
 Overcoming Analytical Weakness and Provision for Availability of Relevant ESG Data
 Formulation of Computational Guidelines for Value Reporting Purposes

 Institutional Arrangement / Regulatory Framework for Governance of IR Processes

 Bangladesh Status

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 IR CHALLENGES

 Apprehensions, Uncertainties, Practical Problems in Resolving/ Reporting

of Economic Social and Environment Aspects in Annual Corporate Reports
 Integrated Report – Principal or Supplementary Corporate Report ?
(IIRC - No mandate or regulatory guideline……) ?
 Needs Familiarization with Specialized Knowledge , Skills and Practice
 Apprehension of Exploitation for PR and Marketing Purposes – Green !!!
 Lack of Stakeholders Information Needs by Reporting Corporate
 Lack of Top Management Support and Experience for IR !!!
 Lack of Requisite Organizational Governance and Reporting Models for IR
 Definition of KPIs and KRIs ? Reliable Measurement Indicators for V R ?
 Lack of Assurance Re-Certification Agencies for Non Financial Information
 Accounting Renaissance ? Evolved & Broadened Role of Accountants
 Accountants Need to Interpret : The linkages between an organization’s
strategy , governance and financial performance, and Organization’s
performance within economic, social and environmental context – Complex ?
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 IR BENEFITS / OPPORTUNITIES
 IR = “Integrated Thinking – which Involves Monitoring, Managing and
Communicating full Value Generation Process and Contribution to Success
 Provides Holistic, Meaningful Value Added Information to Diverse Stakeholders
 Representation of Resource Stewardship/Value Reporting for Stakeholders Needs

 Harmonization of FR with SR - Unique Business Reporting Model Dimension

 Provides Representation of Entity’s Stewardship and Value Sustainability
 Combines Material Information on Corporates Strategy, Governance , Social
Aspects, Performance Prospects – Reflecting the Economic, Environmental,
Social and Governance Contexts of Operations and Values
 Reflects Inter-dependence of Entity’s Different Resources & Relationships /
“Capitals” – (Financial Capital, Manufactured C, Human C, Intellectual C,
Natural C and Social Capital) - Entity’s Access to and Impact thereon
 Reporting the Inter-dependence Information is Critical to : a) Meaningful
Assessment of Entity’s Long-term Viability and Strategic Business Model ; b)
Meeting Information Needs of Investors and other Stakeholders ; c) Effective
Allocation of Scarce Resource for long term Business Sustainability.

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 OPPORTUNITIES AND PROSPECTS

 IR Practices opens up a whole spectrum of Opportunities for Accountants as

strategic advisors, corporate reporting and management specialists
 IR Demonstrates the Linkage Between an Organization Strategy, Governance &
Financial Performance , and the Economic, Social and Environmental Context
 Provide Thought Leadership, Act as Change Agents & Catalyze Innovation
 Significant Innovative Engagement Opportunities for Professional Accountants
 Potential for Rewarding, Exciting Professional Opportunities for Accountants
 IR Framework Ensuring Sustainable Strategies for Enhanced Accountability
 Enhanced Transparency & Credibility in Public and Private Sector Reporting
 Address Manifold Impediments / Challenges for Socio-Economic Development
 Optimum Utilization/Reporting Resources for Sustainable Development
 Facilitate Sustainable Development for Inclusive Economic Growth.
 Reduce Corruption /System Loss/ Inefficiency through increased Transparency
 Promote Investment , CMD, Industrialization, Exports and GDP Growth
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 OPPORTUNITIES AND PROSPECTS

 Stimulate Mindset Changes – Civil Admin, Regulators, Corporates & Professional

 Transformation of Corporate Reporting for Stakeholders Value Addition

 Significant Enhancement in Financial Reporting Practices Through IR

 IR Development Aims to Enhance & Consolidate Existing Reporting Practices -

Formulating a Reporting Framework that Provides Information Needed to Asses
Organizational Value in the 21st Century

 SR Practice Effects Value Addition for Achieving Sustainable Development by

Incorporating Economic Social and Environmental Performance of Entities

 Scope of Value Reporting Practices Orientation through PPP Between OCAG & ICAB
Aimed at Implementation of SR & IR In Public and Private Sectors of Bangladesh

 Other Considerations & Opportunities

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 ROLE OF ACCOUNTANCY PROFESSION / OPPORTUNITIES

 Accountants Can Contribute in a Plethora of Ways to Initiating , Improving and

Reporting on Corporate Sustainability Efforts
 Major Skills Development for Corporate and Accountants
 Play Leadership Role in Establishing Business Case for SR and IR by Ensuring
Appropriate Governance Structures for Strengthen Implementation, Monitoring
and Accountability and to Effectively Engage All Stakeholders
 Lead the Process in Setting Goals and Integrate Risk Management Assessment
 Transfer Sustainability Performance into Commercial Advantage Through IR
 According to IFAC PAIB Committee – (Professional Members Not in Public
Practice) Perform Four Broad Roles :
a) As Creators (Generators) of Value; b) As Enablers of Value ;
c) As Preservers of Value ; and d) As Reporters of Value in Organizations
 Accountants are positioned to drive economic growth, contribute to business,
industry, investment, overall economic development and GDP growth

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 ROLE OF ACCOUNTANCY PROFESSION / OPPORTUNITIES

 Well Positioned to Progress Value Reporting (IR) Implementation

 Advocacy for concerted awareness development
 Motivate Mindset Changes - Investors , Public and Private Sectors Entities,
 Regulators , Government Agencies & other Stakeholders
 Maintain regular interaction/consultation with IIRC for Guidance and Support
 Professional Training for Technical Skills Development in Value Reporting
 Devise Sustainable Strategies for IR for Private & Public Sector Entities
 Design Appropriate Methodologies for amalgamation of FR with SR
 Formulate Guidelines & Measurement Parameters for Non-financial Aspects
 Adoption/ Customization of IR Framework for Bangladesh Perspective
 Facilitate Regional Harmonization for Implementation of Best Global Practices
 SAFA /ICAB National BPA Awards Catalyst for high quality Corporate Reporting

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 ACCOUNTANTS – CATALYST FOR INNOVATIVE CHANGE
IN PUBLIC AND PRIVATE SECTOR REPORTING / OPPORTUNITIES

 Recent Developments – Impact of Donor Funded Projects

 DFID Funded Remittance and Payments Partnership (RPP)
 DFID funded FIPB / BFPB – Vision-Leadership-Innovation-Sustainability
 RPP / BFPB Project Objectives and Components (I-II-III)
 Significant Technological Innovations
 Central Bank Automation >>>BACH =BACPS and BEFTN >>> RTGS
 Remittances and Payments Challenge Fund (RPCF) –Seeding ideas
 Major Projects / Technological Innovations
 WB Funded Project - Promoting PPP For Improved Audit Quality Assurance
Between ICAB & OCAG for Knowledge Sharing
 Proposed PPP Between ICAB & OCAB for Promoting Sustainability and
Integrated Reporting in Public and Private Sector in Bangladesh

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 ICAB INITIATIVES

 Organized major International Conference in November 2011 on Best Practices

and Reporting for Sustainable Development and Sustainability Reporting –
Addressed by Global Professional Experts -IFAC, GRI, WB, Standard Setters
 Dedicated Seminars ,Workshops & Conference on SR/IR=Manifestation of …..
 Catalyzes / Encourages Professional and Corporate Understanding about
Challenges, Benefits and Value Additions of IR Applications.
 Apprises and motivates Government Planners, Regulators and other
Stakeholders to Effect long Term IR Transitions
 Engages in advocacy for Value Reporting Application (SR/IR)
 Motivates Professionals & Corporates for Implementation of IR Practices
 Organizes Annual Best Published Reports & Corporate Governance Award
 Organizes CPD Learning/ Skills Development on topical Issues like SR/IR
 Training of BB/NBR/NGOs, Other Public, Private Sector Entities
 Initiate Joint Project (Knowledge Sharing) with OCAG for Development &
Implementation of SR/IR Practices in Public & Private Sector Entities
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 ICAB STATUS / (POSITION STATEMENT)

 Albeit a late starter, the ICAB is moving in strides to position itself formidably to
develop awareness and promote the application of IR in the public & private
sectors -financial and corporate sector entities of Bangladesh.
 As the custodian of corporate reporting in the country, the ICAB is taking-up its
position firmly to catalyze and encourage the development, implementation of
Integrated Reporting practices through dissemination of the opportunities,
benefits and value additions of IR, to diverse stakeholders and charting the
future dimensions of best global practices in IR. ICAB is considering
formulating Value Reporting Guidelines and develop a broad-based Business
Case as a marketing tool to promote conceptualization and understanding for
implementation of IR in the financial and corporate sectors. This will inspire the
CAG office to contemplate moving to IR in certain types of public sector
corporation and entities. ICAB is relentlessly exerting its best efforts to serve
the public interest, and for enhancement of knowledge, skills & competence,
- and thereby employment opportunities and earnings off its member .

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 POLICY ISSUES & RECOMMENDATIONS

 Assessment of Challenges and Impediments for Value Reporting

 Assessment of Prospects and Opportunities for Value Reporting
 Formation of an ICAB led multi-disciplinary Trust Force for awareness,
advocacy and promoting the application of SR/IR in the annual corporate
reports of private and public sector entities
 Policy Guidelines for Value Reporting- Adaptation Through Customization
 Formation of Professional Task Force Driving Innovative Changes Through
Leadership and Sustainable Strategies for IR
 SAFA/CAPA Member Bodies Act As Strategic Change Agents
 SAFA/CAPA Platforms for Regional Harmonization for Implementation of
Value Reporting Practices of (SR/IR)
 Effective Interaction with IFAC/ GRI/ IIRC/ ISAR
 Skills Development for Value Reporting – SR/ IR
 Awareness of IAS/IFRS and ISA /ISSAIs by Reproting Entities & Auditors
 Strengthening ICAB TRC - Requisite Skills for Value Reporting : SR/IR
and Green Reporting / Green Taxation/ Carbon Trading etc.
40
 POLICY ISSUES & RECOMMENDATIONS

 Mandating Listed Companies to Engaged Qualified Accountants

 Audit/Professional Requisite Fees Enhancement
 Expand Engagement Opportunities of Members in Innovative Areas of VR

 Strengthening Corporate Governances & CSR Practices

 Broadening Credit Rating Mandate – Covering Value Reporting

 Effective IR Knowledge Dissemination Seminars/Workshops

 Preparation of Implementation Guidelines for SR/ IR
 Incorporating Accounting Leadership and Innovation Awards
 Introducing Sustainability and Integrated Reporting Awards

 Initiate Joint Project (Knowledge Sharing) with OCAG for Development &
Implementation of SR/IR Practices in Public & Private Sector Entities

 Other Issues/ Recommendations

41
 WAY FORWARD

 Development of Action Plan : Main Directions – Responsibility – Timeframe

 Provision for Legal Mandate - Policy Decisions at Legislative/Regulatory levels
 Fund Procurement / Development Partner Support
 Inclusion of IR Agenda in WB Funded PPP Project between ICAB & CAG
 Formation of High Powered Taskforce – Representation from Professional Bodies,
 Regulators, Ministries, Chambers & Bourses for Implementation of Integrated
 Reporting in Bangladesh within a stipulated timeframe (5-10 Years)
 Formulation of Measurement Parameters for ESG Perspective
 Development of Value Reporting Expertise, Standards & Practices
 Initiate Measures for Consolidation of Existing FR into IR Practices
 Synergize Strategic Partnerships among relevant Institutions (IIRC …)
 Incentivize IFAC /IASB /ISAR to formulate Standards/Guidelines on IR
 PPP between ICAB & OCAG for promoting VR (SR/IR) in Public & Private Sector
42
 CONCLUSION

Reporting should be driven by business models linked to strategic and

potential value generation. IR provides sustainable value additions for
relevant stakeholders-enabling better decisions, consistent with sustainable
development and economic growth of Bangladesh (country or region).

The ICAB is well positioned to develop consistent awareness, promote and

support the progressive application of global best practices in Integrated
Reporting. Albeit IR may not be adopted in the near foreseeable future, there
are strong potentials for implementation of IR practices in the long-term, in
the financial and corporate sectors, NGOs and public sector entities of
Bangladesh.

43
WILL IR GET OFF THE GROUND ?
or Will it have a spinning effect?

Definitely Yes !
(Global Implementation Timeframe) 44
 MESSAGE

So, Lets’ Go Ahead and Enhance the Professional Image

– Meet the Challenges and Utilize the Opportunities -
Devise Sustainable Strategies for Implementation of
Best Global Practices in Integrated Reporting.

May ALLAH Subhanawatala’s

Providence be Our Guide !!

THANK YOU
APPENDIX-I

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APPENDIX-II

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APPENDIX-III

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APPENDIX-IV

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 APPENDIX-V

SAFA BPA AWARDS 2016 - INTEGRATED REPORTING WINNER

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 APPENDIX-VI

INTERNATIONAL INTEGRATED RESEARCH COUNCIL (IIRC)

 IIRC Structure -  IIRC Team -

 Board  Governance & Nominations Committee
 Council  <IR> Associates
 Ambassadors  <IR> Framework Panel

IFAC – SAFA PAIB PANEL

 Alan Johnson – IFAC Board and finance leader perspective

 Stathis Gould – IFAC PAIB and Integrated Reporting Lead
 Anwaruddin Chowdhury, PAIB Committee, ICA Bangladesh
 Vrushali Gaud, India <IR> Lab
 Sanjiv Kumar Chaudhary, ICAI Research Committee
 Heshana Kuruppu, CPD Committee, CA Sri Lanka 51
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