The new normal for extended external reporting
To meet the changing demands of stakeholders, corporate reporting is evolving and going beyond financial statements. In order to meet these demands, trust in new forms of external reporting is essential. The IAASB are working to enable this, says IAASB public member and chair of the EER Assurance project, Marek Grabowski
Corporate reporting is evolving and extending beyond the financial statements to meet the changing demands of stakeholders. Extended forms of external reporting (EER) now include, but are not limited to: integrated reporting, sustainability reporting and non-financial reporting about environmental, social and governance matters. Greater accountability, comparability, credibility and transparency are desirable – and further and faster evolution seems likely in the future.
The increasing availability of such EER reports has not been matched by their reliability or by the availability of independent assurance reports on the information that companies report in them. Currently, EER reports may be prepared under legislative or regulator requirements, or under voluntary frameworks, standards and guidance issued by organisations ranging from sector-specific industry bodies to national or international standard-setters.