'Integrated reporting would build on the existing financial reporting model to present additional information about a company's strategy, governance, and performance.' In light of above sentence, prepare a note on purpos

Integrated reporting is founded on integrated thinking, which helps demonstrate interconnectivity of strategy, strategic objectives, performance, risk and incentives and helps to identify sources of value creation. It is a concept that has been created to better articulate the broader range of measures that contribute to long-term value and the role, organisations play in society. Purpose of Integrated Reporting The primary purpose of an integrated report is to explain to providers of financial capital how an organisation creates value over time. An integrated report benefits all stakeholders interested in an organisation's ability to create value over time, including employees, customers, suppliers, business partners, local communities, legislators, regulators and policy-makers. An integrated report aims to provide insight about the resources and relationships used and affected by an organisation – these are collectively referred to as 'the capitals' in this Framework. It also seeks to explain how the organisation interacts with the external environment and the capitals to create value over the short, medium and long term. The capitals are stocks of value that are increased, decreased or transformed through the activities and outputs of the organisation. They are categorized in this Framework as financial, manufactured, intellectual, human, social and relationship, and natural capital, although organisations preparing an integrated report are not required to adopt this categorization or to structure their report along the lines of the capitals. Guiding Principles: The following Guiding Principles underpin the preparation and presentation of an integrated report, informing the content of the report and how information is presented. These Guiding Principles are applied individually and collectively for the purpose of preparing and presenting an integrated report; accordingly, judgement is needed in applying them, particularly when there is an apparent tension between them (e.g., between conciseness and completeness). Strategic focus and future orientation: An integrated report should provide insight into the organisation's strategy, and how it relates to the organisation's ability to create value in the short, medium and long term and to its use of and effects on the capitals. Connectivity of information: An integrated report should show a holistic picture of the combination, interrelatedness and dependencies between the factors that affect the organisation's ability to create value over time. Stakeholder relationships: An integrated report should provide insight into the nature and quality of the organisation's relationships with its key stakeholders, including how and to what extent the organisation understands, takes into account and responds to their legitimate needs and interests. Materiality: An integrated report should disclose information about matters that substantively affect the organisation's ability to create value over the short, medium and long term. An integrated report should be concise: An integrated report includes sufficient context to understand the organisation's strategic governance, performance and prospects without being burdened with less relevant information. Reliability and completeness: An integrated report should include all material matters, both positive and negative, in a balanced way and without material error. Consistency and comparability: The information in an integrated report should be presented: On a basis that is consistent over time. In a way that enables comparison with other organisations to the extent it is material to the organisation's own ability to create value over time.