Integrated Reporting

10/5/2019
INTEGRATED
REPORTING, its ISSUES
and ITS CHALLENGES
ELVIA R SHAUKI
BUSINESS ANALYSIS and VALUATION
FACULTY OF ECONOMICS and BUSINESS,
UNIVERSITAS INDONESIA
The Background
Trend of Governance Model
European
Model
Milton • Stakeholders
Friedman (Multiple
Model Stakeholders)
Anglo Saxon • Shareholders
Model with ethics
• Shareholders
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Definition
1. Integrated Reporting (<IR>) promotes a more cohesive and efficient approach
to corporate reporting and aims to improve the quality of information
available to providers of financial capital to enable a more efficient
and productive allocation of capital.
2. The primary purpose of an integrated report is to explain to providers of
financial capital how an organization creates value over time. An integrated
report benefits all stakeholders interested in an organization’s ability to create
value over time, including employees, customers, suppliers, business
partners, local communities, legislators, regulators and
policy-makers.
Definition
1. An integrated report aims to provide insight about the resources and relationships
used and affected by an organization – these are collectively referred to as “the

capitals” in this Framework. It also seeks to explain how the organization interacts
with the external environment and the capitals to create value over the short,
medium and long term.
2. The capitals are stocks of value that are increased, decreased or transformed through
the activities and outputs of the organization. They are categorized in this Framework
as financial, manufactured, intellectual, human, social and relationship, and natural
capital, although organizations preparing an integrated report are not required to
adopt this categorization or to structure their report along the lines of the capitals.
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Integrated Reporting <IR>

Fundamental Concepts of <IR>
Trend of Corporate
Reporting and its Problem
Sustainability
Reporting • Too focus on
• Does not address shareholder interest
concisely the need • Disconnected
of stakeholders information between
sustainability issue
with strategy and
performance
Financial Integrated
Reporting Reporting
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Trends of Corporate Reporting

and Its Issues
Background
Benefits and Issues of <IR> for Investors
However ….
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Integrated Reporting <IR>

Fundamental Concepts of <IR>
Six Capitals Content Elements Guiding Principles
• Financial Capital • Organizational Overview and External • Strategic Focus and Future Orientation
• Manufactured Capital Environment • Connectivity of Information
• Intellectual Capital • Governance • Stakeholder Relationships
• Human Capital • Business Model • Materiality
• Social and Relationship Capital • Risks and Opportunities • Conciseness
• Natural Capital • Strategy and Resource Allocation • Reliability and Completeness
• Performance • Consistency and Comparability
• Outlook
• Basis of Presentation
THE FINDINGS
Itis called as “LAPORAN KEUANGAN

TERINTEGRASI” (INTEGRATED
REPORTING);
PREPARERS and USERS feel that the
though the current reporting consists of
non-financial information but they are not
considered as INTEGRATED REPORTING.
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INVESTORS
1. If it applies comprehensively, I believe this will have a good

impact;
2. From the investors perspectives, should the preparers provide
information more than just financial information, this will be
useful for the investors in making the decisions (is it for a long-
term planning, is it in line with the company’s vision and mission,
does the company engage socially and environmentally)?
3. To our client, we started to introduce companies that provide ESG
concepts, therefore should there be an Integrated Reporting
applied to the Indonesian companies, this will be really useful for
the investors as the current available information is still limited;
Mana yang lebih crucial dari 6 jenis

Capital yang ada?
Semua capital dibahas di AR (untuk large
sized companies);
Tergantung dari industry tingkat kedalaman
pembahasan berbeda-beda;
Financial memiliki porsi terbesar;
Kinerja / sustainability selalu dikaitkan
dengan fungsi keuangan.
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STANDARD SETTERS
 Hingga hari ini DSAK – IAI masih belum melakukan diskusi
terkait dengan IR, mengingat PR kita untuk menyelesaikan
IFRS Adoption masih cukup banyak dan sifatnya masih
urgent. Ini masih merupakan konsentrasi kami;
 Normative statement, kita setuju IR memang sangat
dibutuhkan, sudah sangat mendesak untuk diterapkan.
 Positively appetite dari preparers dan dari investors masih
sangat rendah;
 Perlu penelitian yang mendalam mengapa SR begitu besar
responsenya dan bukan IR, apa yang hilang dari info yang
disajikan di SR tersebut sehingga appetite dari keduanya
rendah?
STANDARD SETTERS
 Harus ada edukasi yang baik sekali mengenai pentingnya IR

baik kepada investors maupun pada preparers juga kepada
assurance providers;
 Pendidikan yang baik mengenai value creation melalui
kualitas informasi yang lebih baik mengenai penggunaan 6
jenis capital tadi (sebagai contoh pembahasan mengenai
biaya training);
 Value creation untuk stakeholders, shareholders (providers
of financial capital), atau untuk siapa; untuk users, atau
preparers?
 Creation itu apa? Create sampai ke implement atau hanya
create saja?
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STANDARD SETTERS
 Guiding principles dan content elements yang dilakukan oleh
early adopters, masih bersifat formality saja. Ambil contoh
materialty yang disajikan dalam IR masih bersifat sangat umum
sekali;
 Gaung harus lebih kuat lagi.
 Edukasi yang baik akan mempengaruhi pengambilan keputusan
yang lebih baik, penyediaan informasi lebih baik, harus ada
klarifikasi yang lebih baik lagi;
 Memang harus multidisiplin, pesan bahwa kita kembali ke single
stakeholder jangan hilang misi utamanya, walaupun kembali ke
single stakeholders kualitas informasi harus lebih ditingkatkan.
THANK YOU ….
ELVIA R SHAUKI
BUSINESS ANALYSIS and VALUATION
FACULTY OF ECONOMICS and BUSINESS,
UNIVERSITAS INDONESIA

Integrated Reporting

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Integrated Reporting

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10/5/2019

used and affected by an organization – these are collectively referred to as “the

Integrated Reporting <IR>

Trends of Corporate Reporting

Integrated Reporting <IR>

Six Capitals Content Elements Guiding Principles

Itis called as “LAPORAN KEUANGAN

1. If it applies comprehensively, I believe this will have a good

Mana yang lebih crucial dari 6 jenis

 Harus ada edukasi yang baik sekali mengenai pentingnya IR

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