ACCA Strategic Business Reporting (SBR) Practice Exam

What does an integrated report aim to provide to stakeholders?

1. A critique of financial policies

2. An overview of social responsibilities

3. Information on strategy, performance, and value creation

4. A summary of regulatory compliance

The correct answer is: Information on strategy, performance, and value creation

An integrated report aims to provide stakeholders with a comprehensive understanding of an organization's strategy, performance, and value creation. This type of report goes beyond traditional financial reporting to include a variety of factors that contribute to the overall success and sustainability of the organization. The significance of integrated reporting lies in its holistic approach, which encompasses financial and non-financial information. It highlights how the organization creates value over time, incorporating insights into environmental, social, and governance (ESG) issues that affect its ability to generate financial returns and impacts on stakeholders. By focusing on strategy, performance, and value creation, integrated reports facilitate better decision-making for stakeholders, including investors, customers, and employees, as they are equipped with relevant and interconnected information that reflects the organization's long-term viability and accountability. Other options, while they address important aspects of an organization’s operations or stakeholder concerns, do not encapsulate the full scope of what an integrated report seeks to deliver. A critique of financial policies, an overview of social responsibilities, or a summary of regulatory compliance, while potentially relevant components of an organization's reporting, do not provide the comprehensive picture that integrated reporting is designed to communicate.