IFAC: New guidance on improving business reporting processes

17 January 2013

The PAIB Committee of the IFAC issued new International Good Practice Guidance, Principles for Effective Business Reporting Processes. This principles-based guidance establishes a benchmark for professional accountants in business to establish more effective business processes in the organisations.

"An organisation’s sustainable success depends on the support of stakeholders and the quality of their decision making”, said Roger Tabor, chair of the PAIB Committee. “High-quality reporting is essential to both, and needs effective business processes to deliver it."

This guidance is directed at all organisations wishing to enhance their reporting processes—no matter their size or structure, or whether they are private or public, as all organisations should have effective reporting processes to provide high-quality reports for their internal and external stakeholders.

“Professional accountants in business are often involved in the design, planning, execution, audit, evaluation and improvement—or, in short, the implementation—of their organisations’ reporting processes”, said Karyn Brooks, chair of the PAIB Committee’s Business Reporting Task Force. “This International Good Practice Guidance covers the primary issues professional accountants in business should address in implementing effective reporting processes in their organisations.”

This International Good Practice Guidance from the IFAC Professional Accountants in Business (PAIB) Committee helps organisations enhance their reporting processes and discusses the key issues professional accountants in business need to address when implementing effective reporting processes in their organisation. At the heart of the new guidance are 11 key principles for evaluating and improving business reporting processes, which are complemented by practical guidance outlining the critical arrangements that need to be in place for effective business reporting.

The principles do not prescribe a specific approach, but highlight a number of areas for specific consideration when implementing reporting processes:

1. committing to effective reporting processes;
2. determining roles and responsibilities;
3. planning and controlling the reporting processes;
4. engaging stakeholders;
5. defining the reporting content;
6. selecting frameworks and standards;
7. determining reporting processes;
8. using reporting technology;
9. analysing and interpreting reporting information;
10. obtaining assurance and providing for accountability;
11. evaluating and improving reporting processes.

Press release

Principles for effective business reporting processes

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