Trends in integrated reporting: a state owned company analysis

Surty, Mahmood Ismail
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Accountability by state owned companies has been lacking in recent times. The need for an oversight mechanism to improve governance and as such accountability is required for state owned companies (IOD and PWC, 2011). Integrated reporting has answered this call due to its ability to provide a holistic view of the factors that create value for an entity in the short, medium and long-term. South African state owned companies have realised the benefit integrated reporting can have on their corporate governance and as such have adopted integrated reporting in terms of King III and the IR Framework. The purpose of this study is to investigate the trends in integrated reporting by state owned companies per The Public Finance Management Act 1999 for the 2013, 2014 and 2015 financial periods. This report examines the extent of disclosure made by state owned companies per the King III and IR Framework recommendations and requirements in respect of integrated reporting; by means of using a scorecard approach to identify the level of disclosure made by each state owned company. The key findings of this study was that the level of reporting disclosure by state owned companies increased following an upward positive trend with the disclosures on average increasing from providing little information on a poor to average basis in 2013 to providing some information at a satisfactory level in 2015. It was found that there were no instances of noncompliance with overall disclosure by any of the state owned companies analysed over the three year period. Furthermore, not a single company provided disclosure overall at an excellent level in any of the three years analysed. This finding suggests that although improving, the level of integrated reporting disclosure by state owned companies is still only satisfactory and as such there is a lot of room for improvement over time. Areas that are in need of reform relate to governance, the governance of information technology, the provision of information on the outlook of the entity and information as to the basis upon which integrated reports are prepared.
A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Masters of Commerce (Accountancy).
Surty, Ismail Mahmood (2016) Trends in integrated reporting: a state owned company analysis, University of the Witwatersrand, Johannesburg, <>