KUALA LUMPUR: Twenty-one public listed companies (PLCs) have pledged to embrace integrated reporting (IR), a form of reporting that helps organisations report how strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term.

“In the nation’s inaugural IR conference organised by the MIA (Malaysia Institute of Accountants) recently, it is encouraging to note that 21 listed companies have pledged to embrace IR in the near future in addition to the existing four IR adopters among listed companies. It is anticipated that more [PLCs] will follow suit,” said Second Finance Minister Datuk Johari Abdul Ghani in his keynote address at the 2016 MIA International Accountants Conference organised by the MIA.

Acknowledging the MIA’s efforts in advocating IR to Malaysia’s business community, he also said the IR has been hailed as a game changer for corporate reporting globally as it requires companies to look beyond financials and compliance-driven reporting for communication to stakeholders.

“Not being merely about better reporting, the process of IR brings about integrated thinking, a better appreciation of the different resources used and affected by the companies in their value-creation process, and should lead to improved performance as a result,” he said.

Through its IR Steering Committee, the MIA works closely with the International Integrated Reporting Council and Malaysian regulators such as the Securities Commission Malaysia and Bursa Malaysia to spearhead IR locally.

Also an accountant himself, Johari said there is no question the accountancy profession has a unique, critical and practical role in building stronger and more stable economies globally.

“According to a report by the International Federation of Accountants, the accountancy profession is strongly linked to national economic growth and improved living standards, and it contributes US$575 billion annually to the global economy.

“More importantly, the accountancy profession has a significant role in strengthening the institutions and architecture of a nation that will improve people’s lives,” he told a roomful of accountants at the conference. He added that without investor confidence and public trust will risk the credibility of information provided by accountants and the profession’s future.