ReportingNZ – CPA Congress 2016Panel discussion: Integrated reporting: Changing the corporate mind-set from one of compliance to it becoming a business imperative. Mark Hucklesby, 18 October 2016

SYDEY10-14 October 2016Full program now availablecpaaustralia.com.au/congress

2016 CPA CONGRESS

Convenor: Prof Jilnaught Wong – University of Auckland

Panelists: Warren Allen – External Reporting Board

Mark Hucklesby – Grant Thornton

Wendy McGuiness – McGuinness Institute

INTEGRATED REPORTINGChanging the corporate mindset from one of compliance to it becoming a business imperative

Warren Allen

Setting the scene – what is happening globally?

• Users of corporate reports lead this revolution• Not a regulatory requirement - this is unusual

• Financial information alone -

• nor indicates value or sustainability• Research is starting to indicate advantages

• Increased investor interest – they understand your business better

• Lower cost of capital – really important in NZ

Setting the scene – what is happening globally?

• It is not all about reporting!• Integrated thinking Integrated reporting <IR>

• Opportunity to “tell your story”• Not constrained by standards• Sufficient flexibility to meet your unique needs

Setting the scene – what is happening globally?• Several frameworks

• <IR> brings them all together• Others are valid, and• Select what best suits your business.

• Some key factors of the global success stories:• Seen as a business imperative, not a compliance process• Increased investor interest in their business, lower cost of capital• Witnessed business process improvements and efficiencies;• Key sponsors within C-suite or Board. and• This is definitely not dismissed as a passing “fad”!

Setting the scene – what is happening globally?

• NZ is behind international trends• Also unusual, as we are generally fast followers

• Essential you get aboard, become an advocate of change !!

Mark Hucklesby

Observations and trends• Uptake of <IR> in NZ so far• Barriers to progress• Potential next steps

Uptake of <IR> in NZ so far• NZX is sharpening its corporate governance code,

seeking more disclosure on various matters• Other sectors (service performance reporting)• Companies that have consciously adopted <IR>

Barriers to progress• Level of investment required by companies to

move from the status quo• Assurance over the non-financial metrics

Some key questions to ask• What time frame?• What stakeholders?• What reporting boundaries?• What business model?

• What reporting format?• Why buy-in do we have

from the governing body?• What can we improve?

Potential next steps for NZ• Set a deadline with a "comply or explain" sanction

for entities with public accountability• Focus on quality and back that up by reinstating

annual reporting awards

A closing thought …“Any intelligent fool can make things bigger and more complex ... it takes a touch of genius - and a lot of courage to move in the opposite direction.” Albert Einstein

Wendy McGuiness

Reporting NZ

Contributing to an informed society

Closing remarks

SYDEY10-14 October 2016Full program now availablecpaaustralia.com.au/congress