Reporting approach that combines financial results with strategy, governance, and other value-creation information to give a broader picture than traditional financial statements alone.
Integrated reporting is a reporting approach that combines traditional financial information with broader discussion about strategy, governance, risks, resources, and long-term value creation. It aims to show how an organization creates value over time rather than presenting financial results in isolation.
It matters because many users believe ordinary financial reporting is necessary but not sufficient. The statements show the numbers; integrated reporting tries to connect those numbers to business model quality, stewardship, and future capacity.
Integrated reporting tries to connect:
financial performance
operating strategy
governance quality
major risks and dependencies
longer-term value creation
The goal is not to replace financial statements, but to frame them inside a broader explanation of how the organization works.
Traditional reporting can fragment the picture. One document may show earnings, another may discuss sustainability, and another may describe governance. Integrated reporting tries to reduce that fragmentation by presenting a more connected view.
Financial reporting focuses on the preparation and disclosure of financial information.
Integrated reporting goes beyond that narrower boundary by linking financial information with non-financial drivers of value.
Financial Reporting: The core discipline of producing financial disclosures and statements.
Annual Report: A common vehicle through which integrated reporting ideas may be presented.
Corporate Report: A broader reporting package that may incorporate integrated reporting elements.