<IR> CONTENT ELEMENTSThe Content Elements are fundamentally linked to each other and are not mutually exclusive. The order of the Content Elements as listed here is not the only way they could be sequenced; accordingly, the Content Elements are not intended to serve as a standard structure for an integrated report with information about them appearing in a set sequence or as isolated, standalone sections. Rather, information in an integrated report is presented in a way that makes the connections between the Content Elements apparent.Copyright © December 2013 by the International Integrated Reporting Council (‘the IIRC’)International Integrated Reporting CouncilIIRC_aa11a91e-0181-11e4-af99-8a12a0b8dfe9The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. Together, this coalition shares the view that communication about value creation should be the next step in the evolution of corporate reporting.RegulatorsInvestorsCompaniesStandard SettersAccounting ProfessionNGOsA world in which integrated thinking is embedded within mainstream business practice in the public and private sectors, facilitated by Integrated Reporting (<IR>) as the corporate reporting norm. _d8103cd2-0266-11e4-81cb-fe39a0b8dfe9To facilitate communication about value creation in the evolution of corporate reporting_d81041c8-0266-11e4-81cb-fe39a0b8dfe9Integrated Reporting<IR> aims to: * Improve the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital * Promote a more cohesive and efficient approach to corporate reporting that draws on different reporting strands and communicates the full range of factors that materially affect the ability of an organization to create value over time * Enhance accountability and stewardship for the broad base of capitals (financial, manufactured, intellectual, human, social and relationship, and natural) and promote understanding of their interdependencies * Support integrated thinking, decision-making and actions that focus on the creation of value over the short, medium and long term.AccountabilityStewardshipValue Creation<IR> is consistent with developments in financial and other reporting, but an integrated report also differs from other reports and communications in a number of ways. In particular, it focuses on the ability of an organization to create value in the short, medium and long term, and in so doing it: * Has a combined emphasis on conciseness, strategic focus and future orientation, the connectivity of information and the capitals and their interdependencies * Emphasizes the importance of integrated thinking within the organization.ConcisenessAn integrated report should be concise.ReliabilityReliability and completeness -- An integrated report should include all material matters, both positive and negative, in a balanced way and without material error. The reliability of information is affected by its balance and freedom from material error. Reliability (which is often referred to as faithful representation) is enhanced by mechanisms such as robust internal control and reporting systems, stakeholder engagement, internal audit or similar functions, and independent, external assurance.CompletenessA complete integrated report includes all material information, both positive and negative. To help ensure that all material information has been identified, consideration is given to what organizations in the same industry are reporting on because certain matters within an industry are likely to be material to all organizations in that industry.BalanceA balanced integrated report has no bias in the selection or presentation of information. Information in the report is not slanted, weighted, emphasized, de-emphasized, combined, offset or otherwise manipulated to change the probability that it will be received either favourably or unfavourably. ConsistencyConsistency and comparability -- The information in an integrated report should be presented on a basis that is consistent over time. In a way that enables comparison with other organizations to the extent it is material to the organization’s own ability to create value over time. Reporting policies are followed consistently from one period to the next unless a change is needed to improve the quality of information reported. This includes reporting the same KPIs if they continue to be material across reporting periods. When a significant change has been made, the organization explains the reason for the change, describing (and quantifying if practicable and material) its effect.ComparabilityThe specific information in an integrated report will, necessarily, vary from one organization to another because each organization creates value in its own unique way. Nonetheless, addressing the questions relating to the Content Elements, which apply to all organizations, helps ensure a suitable level of comparability between organizations. Strategic FocusAn integrated report should provide insight into the organization’s strategy, and how it relates to the organization’s ability to create value in the short, medium and long term and to its use of and effects on the capitals.Future OrientationConnectivityConnectivity of Information - An integrated report should show a holistic picture of the combination, interrelatedness and dependencies between the factors that affect the organization’s ability to create value over time.The Capitalsfinancial, manufactured, intellectual, human, social and relationship, and naturalStakeholde RelationshipsIntegrated thinking is the active consideration by an organization of the relationships between its various operating and functional units and the capitals that the organization uses or affects. Integrated thinking leads to integrated decision-making and actions that consider the creation of value over the short, medium and long-term... An integrated report should provide insight into the nature and quality of the organization’s relationships with its key stakeholders, including how and to what extent the organization understands, takes into account and responds to their legitimate needs and interests.MaterialityAn integrated report should disclose information about matters that substantively affect the organization’s ability to create value over the short, medium and long term.InterdependenciesIntegrated thinking takes into account the connectivity and interdependencies between the range of factors that affect an organization’s ability to create value over time, including: * The capitals that the organization uses or affects, and the critical interdependencies, including trade-offs, between them * The capacity of the organization to respond to key stakeholders’ legitimate needs and interests * How the organization tailors its business model and strategy to respond to its external environment and the risks and opportunities it faces * The organization’s activities, performance (financial and other) and outcomes in terms of the capitals -- past, present and future.Information FlowThe more that integrated thinking is embedded into an organization’s activities, the more naturally will the connectivity of information flow into management reporting, analysis and decision-making. It also leads to better integration of the information systems that support internal and external reporting and communication, including preparation of the integrated report.Overview & External EnvironmentDocument what the organization does and the circumstances under which it operates_d81042fe-0266-11e4-81cb-fe39a0b8dfe9AAn integrated report should answer the question: What does the organization do and what are the circumstances under which it operates?Mission, Vision & ContextIdentify the organization’s mission and vision, and provide essential context_d8104402-0266-11e4-81cb-fe39a0b8dfe9A1An integrated report identifies the organization’s mission and vision, and provides essential context by identifying matters such as: * The organization’s: - culture, ethics and values - ownership and operating structure - principal activities and markets - competitive landscape and market positioning (considering factors such as the threat of new competition and substitute products or services, the bargaining power of customers and suppliers, and the intensity of competitive rivalry) - position within the value chain * Key quantitative information (e.g., the number of employees, revenue and number of countries in which the organization operates), highlighting, in particular, significant changes from prior periods * Significant factors affecting the external environment and the organization’s response.External EnvironmentDocument how aspects of the legal, commercial, social, environmental and political context may affect the organization’s ability to create value_d81044f2-0266-11e4-81cb-fe39a0b8dfe9A2Significant factors affecting the external environment include aspects of the legal, commercial, social, environmental and political context that affect the organization’s ability to create value in the short, medium or long term. They can affect the organization directly or indirectly (e.g., by influencing the availability, quality and affordability of a capital that the organization uses or affects). These factors occur in the context of the particular organization, in the context of its industry or region, and in the wider social or planetary context. They may include, for example: * The legitimate needs and interests of key stakeholders * Macro and micro economic conditions, such as economic stability, globalization, and industry trends * Market forces, such as the relative strengths and weaknesses of competitors and customer demand * The speed and effect of technological change * Societal issues, such as population and demographic changes, human rights, health, poverty, collective values and educational systems * Environmental challenges, such as climate change, the loss of ecosystems, and resource shortages as planetary limits are approached * The legislative and regulatory environment in which the organization operates * The political environment in countries where the organization operates and other countries that may affect the ability of the organization to implement its strategy.GovernanceDocument how the organization’s governance structure supports its ability to create value_d81045d8-0266-11e4-81cb-fe39a0b8dfe9BAn integrated report should answer the question: How does the organization’s governance structure support its ability to create value in the short, medium and long-term? An integrated report provides insight about how such matters as the following are linked to its ability to create value:Leadership StructureDocument how the organization's ability to create value is linked to its leadership structure_d810474a-0266-11e4-81cb-fe39a0b8dfe9B1The organization’s leadership structure, including the skills and diversity (e.g., range of backgrounds, gender, competence and experience) of those charged with governance and whether regulatory requirements influence the design of the governance structureDecision-Making & MonitoringDocument how the organization's ability to create value is linked to processes used to make strategic decisions and to establish and monitor the culture of the organization_d810484e-0266-11e4-81cb-fe39a0b8dfe9B2Specific processes used to make strategic decisions and to establish and monitor the culture of the organization, including its attitude to risk and mechanisms for addressing integrity and ethical issuesStrategic Direction & Risk ManagementDocument how the organization's ability to create value is linked to particular actions those charged with governance have taken to influence and monitor the strategic direction of the organization and its approach to risk management_d8104952-0266-11e4-81cb-fe39a0b8dfe9B3Culture, Ethics & ValuesDocument how the organization's ability to create value is linked to its culture, ethics and values_d8104ae2-0266-11e4-81cb-fe39a0b8dfe9B4How the organization’s culture, ethics and values are reflected in its use of and effects on the capitals, including its relationships with key stakeholdersGovernanceDocument how the organization's ability to create value is linked to its governance practices_d8104be6-0266-11e4-81cb-fe39a0b8dfe9B5Whether the organization is implementing governance practices that exceed legal requirementsInnovationDocument how the organization's ability to create value is linked to the responsibility those charged with governance take for promoting and enabling innovation_d8104ce0-0266-11e4-81cb-fe39a0b8dfe9B6Remuneration & IncentivesDocument how the organization's ability to create value is linked to remuneration and incentives_d8104dd0-0266-11e4-81cb-fe39a0b8dfe9B7How remuneration and incentives are linked to value creation in the short, medium and long term, including how they are linked to the organization’s use of and effects on the capitals.Business ModelDocument the organization’s business model_d8104ed4-0266-11e4-81cb-fe39a0b8dfe9CAn integrated report should answer the question: What is the organization’s business model? An organization’s business model is its system of transforming inputs, through its business activities, into outputs and outcomes that aims to fulfil the organization’s strategic purposes and create value over the short, medium and long term. An integrated report describes the business model, including key: * Inputs (see paragraphs 4.14 - 4.15) * Business activities (see paragraphs 4.16 - 4.17) * Outputs (see paragraph 4.18) * Outcomes (see paragraphs 4.19 - 4.20). Features that can enhance the effectiveness and readability of the description of the business model include: * Explicit identification of the key elements of the business model * A simple diagram highlighting key elements, supported by a clear explanation of the relevance of those elements to the organization * Narrative flow that is logical given the particular circumstances of the organization * Identification of critical stakeholder and other (e.g., raw material) dependencies and important factors affecting the external environment * Connection to information covered by other Content Elements, such as strategy, risks and opportunities, and performance (including KPIs and financial considerations, like cost containment and revenues).InputsShow how inputs relate to the capitals on which the organization depends_d8104fec-0266-11e4-81cb-fe39a0b8dfe9C1An integrated report shows how key inputs relate to the capitals on which the organization depends, or that provide a source of differentiation for the organization, to the extent they are material to understanding the robustness and resilience of the business model. An integrated report does not attempt to provide an exhaustive list of all inputs. Rather, the focus is on those that have a material bearing on the ability to create value in the short, medium and long term, whether or not the capitals from which they are derived are owned by the organization. It may also include a discussion of the nature and magnitude of the significant trade-offs that influence the selection of inputs (see paragraph 4.56). Business ActivitiesDescribe key business activities_d81051fe-0266-11e4-81cb-fe39a0b8dfe9C2An integrated report describes key business activities. This can include: * How the organization differentiates itself in the market place (e.g., through product differentiation, market segmentation, delivery channels and marketing) * The extent to which the business model relies on revenue generation after the initial point of sale (e.g., extended warranty arrangements or network usage charges) * How the organization approaches the need to innovate * How the business model has been designed to adapt to change. When material, an integrated report discusses the contribution made to the organization’s long term success by initiatives such as process improvement, employee training and relationships management.OutputsIdentify the organization’s key products and services_d8105366-0266-11e4-81cb-fe39a0b8dfe9C3An integrated report identifies an organization’s key products and services. There might be other outputs, such as by-products and waste (including emissions), that need to be discussed within the business model disclosure depending on their materiality.OutcomesDescribe key outcomes_d8105474-0266-11e4-81cb-fe39a0b8dfe9C4An integrated report describes key outcomes, including: * Both internal outcomes (e.g., employee morale, organizational reputation, revenue and cash flows) and external outcomes (e.g., customer satisfaction, tax payments, brand loyalty, and social and environmental effects) * Both positive outcomes (i.e., those that result in a net increase in the capitals and thereby create value) and negative outcomes (i.e., those that result in a net decrease in the capitals and thereby diminish value). Identifying and describing outcomes, particularly external outcomes, requires an organization to consider the capitals more broadly than those that are owned or controlled by the organization. For example, it may require disclosure of the effects on capitals up and down the value chain (e.g., carbon emissions caused by products the organization manufactures and labour practices of key suppliers). (See also paragraphs 3.30 - 3.35 regarding determination of the reporting boundary.)Disclosure & ComplexityBalance disclosure with the need to reduce complexity_d8105582-0266-11e4-81cb-fe39a0b8dfe9C5Organizations with multiple business models -- Some organizations employ more than one business model (e.g., when operating in different market segments). Disaggregating the organization into its material constituent operations and associated business models is important to an effective explanation of how the organization operates. This requires a distinct consideration of each material business model as well as commentary on the extent of connectivity between the business models (such as the existence of synergistic benefits ) unless the organization is run as an investment management business (in which case, it may be appropriate to focus on the investment management business model, rather than the business models of individual investments). The integrated report of an organization with multiple businesses often needs to balance disclosure with the need to reduce complexity; however, material information should not be omitted. Aligning external reporting with internal reporting by considering the top level of information that is regularly reported to those charged with governance is ordinarily appropriate.Risks & OpportunitiesDocument the risks and opportunities affecting the organization’s ability to create value_d81056a4-0266-11e4-81cb-fe39a0b8dfe9DAn integrated report should answer the question: What are the specific risks and opportunities that affect the organization’s ability to create value over the short, medium and long term, and how is the organization dealing with them? An integrated report identifies the key risks and opportunities that are specific to the organization, including those that relate to the organization’s effects on, and the continued availability, quality and affordability of, relevant capitals in the short, medium and long term. This can include identifying:SourcesDocument the sources of risks and opportunities_d810591a-0266-11e4-81cb-fe39a0b8dfe9D1The specific source of risks and opportunities, which can be internal, external or, commonly, a mix of the two. External sources include those stemming from the external environment, as discussed in paragraphs 4.6 - 4.7. Internal sources include those stemming from the organization’s business activities, as discussed in paragraphs 4.16 - 4.17.Probability & MagnitudeAssess the likelihood that the risk or opportunity will come to fruition and the magnitude of its effect if it does_d8105a78-0266-11e4-81cb-fe39a0b8dfe9D2The organization’s assessment of the likelihood that the risk or opportunity will come to fruition and the magnitude of its effect if it does. This includes consideration of the specific circumstances that would cause the risk or opportunity to come to fruition. Such disclosure will invariably involve a degree of uncertainty. (See also paragraph 4.50 regarding disclosures about uncertainty.)Mitigation, Management & Value CreationDocument the steps being taken to mitigate or manage key risks or to create value from key opportunities_d8105bcc-0266-11e4-81cb-fe39a0b8dfe9D3The specific steps being taken to mitigate or manage key risks or to create value from key opportunities, including the identification of the associated strategic objectives, strategies, policies, targets and KPIs. Considering the Guiding Principle, Materiality, the organization’s approach to any real risks (whether they be in the short, medium or long term) that are fundamental to the ongoing ability of the organization to create value and that could have extreme consequences is ordinarily included in an integrated report, even when the probability of their occurrence might be considered quite small.Strategy & Resource AllocationDocument where the organization wants to go and how it intends to get there_d8105cee-0266-11e4-81cb-fe39a0b8dfe9EAn integrated report should answer the question: Where does the organization want to go and how does it intend to get there? An integrated report ordinarily identifies: ObjectivesDocument the organization’s short, medium and long term strategic objectives_d8105e42-0266-11e4-81cb-fe39a0b8dfe9E1StrategiesDocument the strategies the organization has in place, or intends to implement, to achieve those strategic objectives_d8106040-0266-11e4-81cb-fe39a0b8dfe9E2Resource AllocationDocument the resource allocation plans the organization has to implement its strategy_d81061a8-0266-11e4-81cb-fe39a0b8dfe9E3MetricsDocument how the organizations will measure achievements and target outcomes for the short, medium and long term. _d81062fc-0266-11e4-81cb-fe39a0b8dfe9E4LinkagesDescribe the linkage between the organization’s strategy and resource allocation plans, and the information covered by other Content Elements_d810645a-0266-11e4-81cb-fe39a0b8dfe9E5This can include describing: The linkage between the organization’s strategy and resource allocation plans, and the information covered by other Content Elements, including how its strategy and resource allocation plans:Business ModelDescribe how how the organization's strategy and resource allocation plans relate to the organization’s business model, and what changes to that business model might be necessary to implement chosen strategies to provide an understanding of the organization’s ability to adapt to change_d810657c-0266-11e4-81cb-fe39a0b8dfe9E5iExternal Risks & OpportunitiesDescribe how how the organization's strategy and resource allocation plans are influenced by/respond to the external environment and the identified risks and opportunities_d81066a8-0266-11e4-81cb-fe39a0b8dfe9E5iiCapitals & Risk ManagementDescribe how how the organization's strategy and resource allocation plans affect the capitals, and the risk management arrangements related to those capitals_d81067f2-0266-11e4-81cb-fe39a0b8dfe9E5iiiDifferentiation & Competitive AdvantageDocument what differentiates the organization to give it competitive advantage and enable it to create value_d81069fa-0266-11e4-81cb-fe39a0b8dfe9E6What differentiates the organization to give it competitive advantage and enable it to create value, such as: - the role of innovation - how the organization develops and exploits intellectual capital - the extent to which environmental and social considerations have been embedded into the organization’s strategy to give it a competitive advantageStakeholder EngagementDocument findings of stakeholder engagement_d8106b44-0266-11e4-81cb-fe39a0b8dfe9E7Key features and findings of stakeholder engagement that were used in formulating its strategy and resource allocation plans.PerformanceDocument the extent the organization has achieved its strategic objectives_d8106cb6-0266-11e4-81cb-fe39a0b8dfe9FAn integrated report should answer the question: To what extent has the organization achieved its strategic objectives for the period and what are its outcomes in terms of effects on the capitals? An integrated report contains qualitative and quantitative information about performance that may include matters such as:Quantitative IndicatorsDocument quantitative indicators with respect to targets and risks and opportunities, explaining their significance, their implications, and the methods and assumptions used in compiling them_d8106e14-0266-11e4-81cb-fe39a0b8dfe9F1Capitals EffectsDocument the organization’s effects (both positive and negative) on the capitals, including material effects on capitals up and down the value chain_d8106f4a-0266-11e4-81cb-fe39a0b8dfe9F2Stakeholder RelationshipsDocument the state of key stakeholder relationships and how the organization has responded to key stakeholders’ legitimate needs and interests_d8107120-0266-11e4-81cb-fe39a0b8dfe9F3Performance & OutlookDocument the linkages between past and current performance, and between current performance and the organization’s outlook_d8107256-0266-11e4-81cb-fe39a0b8dfe9F4Financial PerformanceDemonstrate the connectivity of financial performance with performance regarding other capitals_d810738c-0266-11e4-81cb-fe39a0b8dfe9F5KPIs that combine financial measures with other components (e.g., the ratio of greenhouse gas emissions to sales) or narrative that explains the financial implications of significant effects on other capitals and other causal relationships (e.g., expected revenue growth resulting from efforts to enhance human capital) may be used to demonstrate the connectivity of financial performance with performance regarding other capitals. In some cases, this may also include monetizing certain effects on the capitals (e.g., carbon emissions and water use).RegulationsDocument instances where regulations have a significant effect on performance_d810759e-0266-11e4-81cb-fe39a0b8dfe9F6It may be relevant for the discussion of performance to include instances where regulations have a significant effect on performance (e.g., a constraint on revenues as a result of regulatory rate setting) or the organization’s non-compliance with laws or regulations may significantly affect its operations.OutlookDocument the challenges and uncertainties is the organization likely to encounter in pursuing its strategy_d8107710-0266-11e4-81cb-fe39a0b8dfe9GAn integrated report should answer the question: What challenges and uncertainties is the organization likely to encounter in pursuing its strategy, and what are the potential implications for its business model and future performance? An integrated report ordinarily highlights anticipated changes over time and provides information, built on sound and transparent analysis, about:External EnvironmentDocument the organization’s expectations about the external environment the organization is likely to face in the short, medium and long term _d8107850-0266-11e4-81cb-fe39a0b8dfe9G1ImpactDocument how the external environment will affect the organization_d8107ad0-0266-11e4-81cb-fe39a0b8dfe9G2Challenges & UncertaintiesDocument how the organization is currently equipped to respond to the critical challenges and uncertainties that are likely to arise_d8107cba-0266-11e4-81cb-fe39a0b8dfe9G3RealityEnsure the organization’s stated expectations, aspirations and intentions are grounded in reality_d8107e04-0266-11e4-81cb-fe39a0b8dfe9G4Care is needed to ensure the organization’s stated expectations, aspirations and intentions are grounded in reality. They need to be commensurate with the ability of the organization to deliver on the opportunities available to it (including the availability, quality and affordability of appropriate capitals), and a realistic appraisal of the organization’s competitive landscape and market positioning, and the risks it faces.ImplicationsDiscuss the potential implications_d8108138-0266-11e4-81cb-fe39a0b8dfe9G5The discussion of the potential implications, including implications for future financial performance, ordinarily includes discussion of:External Risks & OpportunitiesDiscuss the external environment, and risks and opportunities, with an analysis of how these could affect the achievement of strategic objectives_d81082b4-0266-11e4-81cb-fe39a0b8dfe9G5iCapitalsDiscuss the availability, quality and affordability of capitals the organization uses or affects (e.g., the continued availability of skilled labour or natural resources), including how key relationships are managed and why they are important to the organization’s ability to create value over time_d8108408-0266-11e4-81cb-fe39a0b8dfe9G5iiKPIs & External InformationProvide lead indicators, KPIs or objectives, relevant information from recognized external sources, and sensitivity analyses_d810867e-0266-11e4-81cb-fe39a0b8dfe9G6An integrated report may also provide lead indicators, KPIs or objectives, relevant information from recognized external sources, and sensitivity analyses. If forecasts or projections are included in reporting the organization’s outlook, a summary of related assumptions is useful. Comparisons of actual performance to previously identified targets further enables evaluation of the current outlook.Laws & RegulationsTake into account the legal or regulatory requirements_d8108804-0266-11e4-81cb-fe39a0b8dfe9G7Disclosures about an organization’s outlook in an integrated report are made taking into account the legal or regulatory requirements to which the organization is subject.Preparation & PresentationDetermine what matters to include in the report and how to quantified or evaluate them _d8108958-0266-11e4-81cb-fe39a0b8dfe9HAn integrated report should answer the question: How does the organization determine what matters to include in the integrated report and how are such matters quantified or evaluated? An integrated report describes its basis of preparation and presentation, including:Materiality Determination ProcessSummarize the organization’s materiality determination process_d8108ade-0266-11e4-81cb-fe39a0b8dfe9H1A summary of the organization’s materiality determination process (see paragraph 4.42). An integrated report includes a summary of the organization’s materiality determination process and key judgements (see paragraphs 3.18 - 3.20). This may include:DescriptionBriefly describe the process used to identify relevant matters, evaluate their importance and narrow them down to material matters_3bc7fa65-02ce-11e4-84f7-c6ec9fb8dfe9H1iBrief description of the process used to identify relevant matters, evaluate their importance and narrow them down to material mattersRolesIdentify the roles of key personnel and those charged with governance_3bc80162-02ce-11e4-84f7-c6ec9fb8dfe9H1iiIdentification of the role of those charged with governance and key personnel in the identification and prioritization of material matters.LinkProvide a link to where a more detailed description of the materiality determination process can be found_3bc801b2-02ce-11e4-84f7-c6ec9fb8dfe9H1iiiA link to where a more detailed description of the materiality determination process can be found may also be included.Reporting BoundaryDescribe the reporting boundary and how it has been determined_3bc8046e-02ce-11e4-84f7-c6ec9fb8dfe9H2A description of the reporting boundary and how it has been determined (see paragraphs 4.43 - 4.46). An integrated report identifies its reporting boundary and explains how it has been determined (see paragraphs 3.30 - 3.35). Financial Reporting EntityInclude material risks, opportunities and outcomes attributable to or associated with entities that are included in the financial reporting entity_3bc806ee-02ce-11e4-84f7-c6ec9fb8dfe9H2iMaterial risks, opportunities and outcomes attributable to or associated with entities that are included in the financial reporting entity, are reported on in the organization’s integrated report.Other Entities/StakeholdersInclude risks, opportunities and outcomes attributable to or associated with other entities/stakeholders to the extent they materially affect the ability of the financial reporting entity to create value._3bc80928-02ce-11e4-84f7-c6ec9fb8dfe9H2iiRisks, opportunities and outcomes attributable to or associated with other entities/stakeholders are reported on in an integrated report to the extent they materially affect the ability of the financial reporting entity to create value. LimitationsDisclose practical issues that might limit the nature and extent of information that can be presented_3bc80b4e-02ce-11e4-84f7-c6ec9fb8dfe9H2iiiPractical issues might limit the nature and extent of information that can be presented in an integrated report. For example: * The availability of reliable data with respect to entities the financial reporting entity does not control * The inherent inability to identify all risks, opportunities and outcomes that will materially affect the ability of the financial reporting entity to create value, particularly in the long term. It may be appropriate to disclose such limitations, and actions being taken to overcome them, in an integrated report.Frameworks & MethodsSummarize the frameworks and methods used_3bc80dc4-02ce-11e4-84f7-c6ec9fb8dfe9H3A summary of the significant frameworks and methods used to quantify or evaluate material matters (see paragraphs 4.47 - 4.48). An integrated report includes a summary of the significant frameworks and methods used to quantify or evaluate material matters included in the report (e.g., the applicable financial reporting standards used for compiling financial information, a company-defined formula for measuring customer satisfaction, or an industry-based framework for evaluating risks). More detailed explanations might be provided in other communications. As noted in paragraph 1.10, when information in an integrated report is similar to or based on other information published by the organization, it is prepared on the same basis as, or is easily reconcilable with, that other information. For example, when a KPI covers a similar topic to, or is based on information published in the organization’s financial statements or sustainability report, it is prepared on the same basis, and for the same period, as that other information.General Reporting Guidance_d8108ce6-0266-11e4-81cb-fe39a0b8dfe9IThe following general reporting matters are relevant to various Content Elements: * Disclosure of material matters (see paragraphs 4.50 - 4.53) * Disclosures about the capitals (see paragraphs 4.54 - 4.55) * Time frames for short, medium and long term (see paragraphs 4.57 - 4.59) * Aggregation and disaggregation (see paragraphs 4.60 - 4.62).Key InformationProvide key information_d8108e44-0266-11e4-81cb-fe39a0b8dfe9I1Taking the nature of a material matter into consideration, the organization considers providing: * Key information, such as: - an explanation of the matter and its effect on the organization’s strategy, business model or the capitals - relevant interactions and interdependencies providing an understanding of causes and effects - the organization’s view on the matter - actions to manage the matter and how effective they have been - the extent of the organization’s control over the matter - quantitative and qualitative disclosures, including comparative information for prior periods and targets for future periodsUncertaintiesDisclose uncertainties_3bc80fe0-02ce-11e4-84f7-c6ec9fb8dfe9I2If there is uncertainty surrounding a matter, disclosures about the uncertainty, such as: - an explanation of the uncertainty - the range of possible outcomes, associated assumptions, and how the information could change if the assumptions do not occur as described - the volatility, certainty range or confidence interval associated with the information provided IndeterminabilityDisclose indeterminability and the reason for it_3bc81206-02ce-11e4-84f7-c6ec9fb8dfe9I3If key information about the matter is considered indeterminable, disclosure of that fact and the reason for it Competitive AdvantageMake general disclosures if significant loss of competitive advantage would result from more specific disclosures_3bc81fee-02ce-11e4-84f7-c6ec9fb8dfe9I4If significant loss of competitive advantage would result, disclosures of a general nature about the matter, rather than specific details (see paragraph 3.51).Some MattersPresent some matter on its own in the integrated report or throughout in conjunction with different Content Elements_3bc81fef-02ce-11e4-84f7-c6ec9fb8dfe9I5Depending on the nature of a matter, it may be appropriate to present it on its own in the integrated report or throughout in conjunction with different Content Elements. Generic DisclosuresAvoid generic disclosures_3bc81ff0-02ce-11e4-84f7-c6ec9fb8dfe9I6Care is needed to avoid generic disclosures. Information is only included when it is of practical use in achieving the primary purpose of an integrated report as noted in paragraph 1.7. This requires that disclosures be specific to the circumstances of the organization. Accordingly, the bulleted lists of examples and considerations with respect to each Content Element are not meant to be checklists of disclosures. Quantitative IndicatorsProvide for comparability in expressing and reporting against targets_3bc81ff1-02ce-11e4-84f7-c6ec9fb8dfe9I7Characteristics of quantitative indicators -- Quantitative indicators, such as KPIs, can help increase comparability and are particularly helpful in expressing and reporting against targets. Common characteristics of suitable quantitative indicators may include that they are: * Relevant to the circumstances of the organization * Consistent with indicators used internally by those charged with governance * Connected (e.g., they display connectivity between financial and other information) * Focused on the matters identified by the organization’s materiality determination process * Presented with the corresponding targets, forecasts or projections for two or more future periods * Presented for multiple periods (e.g., three or more periods) to provide an appreciation of trends * Presented against previously reported targets, forecasts or projections for the purpose of accountability * Consistent with generally accepted industry or regional benchmarks to provide a basis for comparison * Reported consistently over successive periods, regardless of whether the resulting trends and comparisons are favourable or unfavourable * Presented with qualitative information to provide context and improve meaningfulness. Relevant qualitative information includes an explanation of: - measurement methods and underlying assumptions - the reasons for significant variations from targets, trends or benchmarks, and why they are or are not expected to reoccur.CapitalsMake disclosures about the capitals_3bc81ff2-02ce-11e4-84f7-c6ec9fb8dfe9I8Disclosures about the capitals -- Disclosures about the capitals, or a component of a capital:Value CreationMake disclosures based upon their effects on the organization’s ability to create value_3bc82174-02ce-11e4-84f7-c6ec9fb8dfe9I8iAre determined by their effects on the organization’s ability to create value over time, rather than whether or not they are owned by the organizationFuture DemandInclude the factors that affect their availability, quality and affordability and the organization’s expectations of its ability to produce flows from them to meet future demand._3bc82412-02ce-11e4-84f7-c6ec9fb8dfe9I8iiThis is particularly relevant with respect to capitals that are in limited supply, are non-renewable, and can affect the long term viability of an organization’s business model.Qualitative DisclosuresMake qualitative disclosures when it is not practicable or meaningful to quantify significant movements in the capitals_3bc8266a-02ce-11e4-84f7-c6ec9fb8dfe9I8iiiWhen it is not practicable or meaningful to quantify significant movements in the capitals, qualitative disclosures are made to explain changes in the availability, quality or affordability of capitals as business inputs and how the organization increases, decreases or transforms them. It is not, however, necessary to quantify or describe the movements between each of the capitals for every matter disclosed.Complexity, Interdependencies & Trade-OffsDisclose interdependencies considered in determining reporting boundary and important trade-offs that influence value creation over time_3bc828b8-02ce-11e4-84f7-c6ec9fb8dfe9I9This Framework does not require an integrated report to provide an exhaustive account of all the complex interdependencies between the capitals such that an organization’s net impact on the global stock of capitals could be tallied. It is important, however, that an integrated report disclose the interdependencies that are considered in determining its reporting boundary, and the important trade-offs that influence value creation over time, including trade-offs: * Between capitals or between components of a capital (e.g., creating employment through an activity that negatively affects the environment) * Over time (e.g., choosing one course of action when another course would result in superior capital increment but not until a later period) * Between capitals owned by the organization and those owned by others or not at all.Time FramesDetermine the time frame for reporting based upon business and investment cycles, strategies, and key stakeholders’ legitimate needs and interests_3bc82bce-02ce-11e4-84f7-c6ec9fb8dfe9I10Time frames for short, medium and long term -- The future time dimension to be considered in preparing and presenting an integrated report will typically be longer than for some other forms of reporting. The length of each time frame for short, medium and long term is decided by the organization with reference to its business and investment cycles, its strategies, and its key stakeholders’ legitimate needs and interests. Accordingly, there is no set answer for establishing the length for each term. Time frames differ by: * Industry or sector (e.g., strategic objectives in the automobile industry typically cover two model-cycle terms, spanning between eight and ten years, whereas within the technology industry, time frames might be significantly shorter) * The nature of outcomes (e.g., some issues affecting natural or social and relationship capitals can be very long term in nature). The length of each reporting time frame and the reason for such length might affect the nature of information disclosed in an integrated report. For example, because longer term matters are more likely to be more affected by uncertainty, information about them may be more likely to be qualitative in nature, whereas information about shorter term matters may be better suited to quantification, or even monetization. However, it is not necessary to disclose the effects of a matter for each time frame.Aggregation & DisaggregationDetermine the level of aggregation at which to present information_3bc82e26-02ce-11e4-84f7-c6ec9fb8dfe9I11Each organization determines the level of aggregation (e.g., by country, subsidiary, division, or site) at which to present information that is appropriate to its circumstances. This includes balancing the effort required to disaggregate (or aggregate) information against any added meaningfulness of information reported on a disaggregated (or aggregated) basis. In some circumstances, aggregation of information can result in a significant loss of meaning and can also fail to highlight particularly strong or poor performance in specific areas. On the other hand, unnecessary disaggregation can result in clutter that adversely affects the ease of understanding the information. The organization disaggregates (or aggregates) information to an appropriate level considering, in particular, how senior management and those charged with governance manage and oversee the organization and its operations. This commonly results in presenting information based on the business or geographical segments used for financial reporting purposes. (See also paragraphs 4.21 - 4.22 regarding organizations with multiple business models.)2014-07-02http://www.theiirc.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdfOwenAmburOwen.Ambur@verizon.net