SMEs and integrated reporting
Just as laws which govern our society are applied to individuals and groups of individuals, so too integrated reporting and integrated thinking are concepts that apply to all companies regardless of size. The Guiding Principles of integrated reporting contained in the International <IR> Framework can be applied across varying scales of businesses, from large multinationals to small, more locally focused entities. Similarly, the benefits of integrated reporting, which can include an open and transparent communication with stakeholders and achieving longer term sustainability, can be realised by all entities in today’s world of connectivity where most things are connected.
Guidance
Please see the Guidance pages on this website
Benefits of integrated reporting for SMEs
- IFAC article, “Benefits of Integrated Reporting for Small Businesses and Not for Profit Organizations” under the existing IFAC article for SMEs: https://www.ifac.org/knowledge-gateway/contributing-global-economy/discussion/benefits-integrated-reporting-small’
- The publication from IFAC and the IIRC, “Integrated Reporting and Integrated Thinking for SME’s“, explores the benefits of integrated reporting and integrated thinking for SMEs.
Case studies and surveys
- This 2018 document by the Italian Network for Business Reporting provides guidance regarding the implementation of Integrated Reporting by SMEs. This can be used by both those SMEs that have already started to implement integrated reporting and thinking and those that are intended to do so. It can also be beneficial to other organizations and professionals that surround the activities of SMEs.
- This article by Giancarlo Attolini, Past Chair, IFAC SMP Committee and Mats Olsson, IFAC SMP Committee Deputy Chair and Partner, Adrian & Partners, discusses how to guide SME clients on integrated reporting and looks at the capitals and the concept of the “trusted advisor” from the SME standpoint: https://integratedreporting.org/news/integrated-thinking-reporting-requires-trusted-advisors-guiding-your-sme-clients/
- This 2018 publication by ACCA, provides guidance on the governance needs of SMEs, including accountability and reporting: https://www.accaglobal.com/content/dam/ACCA_Global/professional-insights/Governance-needs-for-SMEs/pi-governance-needs-SMEs.pdf
- Case studies published by CIMA show that for a SME to be successful, timely and relevant information is needed for decision making by both the SME itself and its external stakeholders: https://www.cimaglobal.com/Documents/Thought_leadership_docs/reporting/integrated-reporting/Case_study_IR_SMEs.pdf
- This report published by the GRI looks at practices that are driving the reporting behavior of SMEs, with reference to trends and different jurisdictions: https://www.globalreporting.org/resourcelibrary/Empowering_small_business_Policy_recommendations.pdf
- This Australian guide on assurance on SME sustainability reports by CPA Australia, takes a look at some important elements of an integrated report and is centred around the following three-step process: planning; execution and completion: https://www.cpaaustralia.com.au/-/media/corporate/allfiles/document/professional-resources/auditing-assurance/guide-assurance-sme-sustainability-reports.pdf?la=en&rev=4218397fd18d44c685f35484ca32753c