Transcript Professor Ian BALL

WORKSHOP on
INTANGIBLES, INTELLECTUAL CAPITAL &
EXTRA-FINANCIAL INFORMATION
<IR> – an Untilled Field
Ian Ball
International Integrated
Reporting Council
September
2014
Who is the IIRC?
Regulators
Standard
setters
Investors
Companies
Accounting
NGOs
Chair: Prof Mervyn King
CEO: Paul Druckman
Why <IR>: More than financials
The Framework: Fundamental Concepts
The Value Creation Process
Votorantim link <IR> to their Report 2012
<IR> - Global Uptake
South Africa endorses the Framework
<IR> set for take-off in Singapore
<IR> promoted by G100 and major Superannuation Funds
Brazilian Stock Exchange calls for “Report or
Explain” on Integrated Reporting
European Commission hails <IR> as “step ahead”
<IR> crucial part of ‘Japan’s Revitalization Strategy’
Harvard Business School study hails <IR> as enabler of financial stability
India: <IR> Lab backed by CII
UK Guidance on Strategic Report consistent with <IR>
Malaysian Prime Minister declares business take up of <IR>
The World Bank implement <IR>
Recommendation to G20 on <IR>
Where do intangibles fit?
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Why the untilled field?
Does the field have well-defined boundaries?
What count as good examples?
How do we identify the best “measures”?
The “unique story”/comparability trade-off
Intellectual capital, human capital and social
and relationship capital – does the
categorization work?
Final Comments
• Attribution theory
– In reporting
– In relation to outcomes
• Public sector application
– Initial focus of <IR>
– Pioneer network
• Regulation
– Not yet…
International
Integrated Reporting
Council