Page 152 - DCOM409_CONTEMPORARY_ACCOUNTING

Unit 12: Analysis of Financial Reporting Framework

Notes

Caselet Case: Tata group in Global Financial Reporting Panel

he Tata Group has joined the select group of international companies such as Nestle,
EDF, HSBC and others to launch an initiative, the International Integrated Reporting
TCommittee (IIRC), aimed at overhauling international company reporting in the
wake of the recent financial crisis.
Mr Ishat Hussain, Group Finance Director, Tata Sons, has been inducted into the steering
committee of London-based IIRC. When contacted, a spokesman for the Tata Group
confirmed it. No other Indian company has representation in the committee.

The move to form IIRC was initiated in December 2009 when The Prince of Wales convened
a high-level meeting of investors, standard setters, companies, accounting bodies and UN
representatives.
It was agreed at the meeting that the Prince’s Accounting for Sustainability and the Global
Reporting Initiative should work together with other organisations to establish and
international body to oversee the creation of a generally accepted integrated reporting
framework that would connect financial and sustainability reporting.

It was recommended that a working group and a steering committee be formed to establish
the IIRC. While the responsibilities of the working group would include drafting proposals
for the governance arrangements and developing proposal relating to the scope and
content of integrated reporting, the steering committee would provide expert and informed
guidance to the working group and consider and adopt, as appropriate, the proposals
drawn up the working group.
The steering committee will be chaired by Sir Michael Peat, Principal Private Secretary to
The Prince of Wales and the Duchess of Cornwall. The working Committee has co-chairmen,
Mr. Paul Druckman, as Executive Board Chairman and Mr. Ian Ball, Chief Executive Officer,
International Federation of Accountants.
The big four auditors such as PwC, Deloitte, Ernst & Young, and KPMG, international
business schools including Harvard Business School and influential non-profit groups are
also involved.
The steering committee, it is learnt, plans to publish later this year a framework for a
global integrated reporting model that would make annual reports comparable across
borders.

It would be presented to G20 in 2011. The G20 already supports creation of a single set of
reporting standards.

Source: http://www.thehindubusinessline.com
12.3 Summary

Report is a statement containing facts and if they contain accounting information and data
they are called accounting reports.

Accounting reports consist of financial statistics. Management cannot analyse all significant
facts regarding its business especially in case of large scale production where the business
operations are more complex in nature.

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