In a report commissioned by the B20, the business forum that advises G20 governments, the six largest global accounting networks¹ have endorsed <IR> as a key innovation that will make corporate reporting more conducive to long-term investment.
The report highlights the urgency with which policymakers must tackle the structural gap in infrastructure investment, estimated to be US$500 billion annually, and says that corporate reporting has a vital role to play in refocusing investment horizons in favour of longer-term returns, reversing the current trend towards short-termism. The report will help to shape discussions prior to the B20 Summit in Sydney on 16-18 July, an event that will agree and prioritise policy recommendations to heads of government later in the year.
This is the latest significant endorsement of <IR> and is consistent with the IIRC’s approach to encourage the removal of barriers to corporate reporting innovations, and create a regulatory environment in which <IR> can flourish.
The report says that <IR> has "the potential to support better investment evaluation models [...] and hence better investment decisions with a more forward-looking time horizon." It calls on G20 Finance Ministers to "assess and address any practical, legal or statutory barriers to improved corporate reporting [...] in order to make corporate reporting more conducive to infrastructure and other long-term investment."
The accountancy firms are asking the B20 to call on G20 leaders to "Encourage corporate reporting innovations and initiatives that provide investors with a longer-term and broader perspective on shareholder value creation to complement the historical financial performance and current financial position perspective provided by financial statements."
Taken from the latest IIRC press release