Technical Excellence & Value Management Conference- Day 2 Highlights
Africa Integrated Reporting Conference
The conference held on 09 October 2018, attracting 110 delegates from 12 countries across the continent including; Kenya, Rwanda, Botswana, Malawi, Nigeria, Zambia, South Africa, Zimbabwe, Uganda, Morocco, Chad, and Lesotho.
Session 1: Message from Professor Mervin King, Chair AIRC:
Session 2: The Why and Benefits of Integrated Reporting
Chairperson- Admire Ndurunduru, Executive Secretary PAAB Zimbabwe
Panelists- Ralitza Germanova, IFC; Edwin Njamura, Director Corporate Services, Kenya; Vickson Ncube, CEO PAFA .
Representatives from investor community, regulator (Capital Market Authority), and accountancy profession share views on the rational for Integrated Thinking and Reporting.
Ralitza Germanova, Corporate Governance Officer, outlines distinction between #sustainabilityreporting and #integratedreporting.
Session 3: Implement approaches and recent achievement
Chairperson- CPA Edwin Makori, CEO ICPAK;
Panelists- Larissa CLark, Director EY; Susan Blesener, IFC; Verily Molatedi, CEO BICA; Samuel M. Munyua, KCB Group Finance Director.
Edwin Makori, ICPAK CEO opened the session; " ...we need to have a mind shift moving from financial resources to understanding other capitals and how they impact each other...".
Susan Blesener IFC said; "The immediate benefits of IR are: (1) Internal staff have a greater sense of what they should be doing; and (2) the availability of cascaded higher quality information for boards to make better informed decisions...Benefits come even before the organization puts out its first Integrated Report..."
In responding to a question on how to deal with continuity of boards especially in the public sector where membership changes every three years, Blesener responds;" Rapid change poses challenges for continuity, but companies can embed these principles into the company's ethos. Also listing presents an opportunity for you to reinforce to investors where you are taking the company, not just to maximize shareholder value."
Larissa Clark, Director EY, shares the South Africa Integrated Reporting journey. " South Africa is a leader in implementing the reform and has many examples to share..." View presentation
Verily Molatedi, CEO BICA, updated on the establishment of the Botswana Integrated Reporting Committee. In responding to the question on how activities of the committee would be financed to promote Integrated Reporting, Ms Molatetdi said; ", and plan to both allocate a percentage of our member subscriptions and the contributions of our IR committee members to support the funding of IR activities."
Samuel Munyua, KCB on the simplification of the Integrated Reporting process and output shared that " Kenya Commercial Bank Integrated Report is currently less than forty pages."
Session 4: Role of different stakeholders in implementing the reform
Chairperson- Lebogang Senne, Technical Director, PAFA
Panelists- Loshni Naidoo, Project Director, SAICA; Patrick Kabuya, Snr. Governance Specialist, World Bank Group; Anesu Daka, Group CEO IFAC representative; Ciara Reintjes, IRBA representative.
Loshni Naidoo delivered a presentation on stakeholder roles in in implementing IR reforms, reiterating; "...the world is changing and accountants must aim to look beyond financials.". In responding to a question on how the various capitals in IR should be weighted, and if Financial Capital should be given greater focus versus other capitals, Loshni said; "...consider all 6 capitals bearing in mind that focus will vary from one company to the next. There will also be a trade off...". View presentation
Anesu Daka discussed how integrated reporting fits into the reporting landscape. View presentation
Patrick Kabuya outlined the role of the World Bank Group in promoting Integrated Reporting; " The WB plays a key role in influencing and supporting the reform and member countries; and developing tools and hosting events to promote IR.". In responding to a question on how the various capitals in IR should be weighted, and if Financial Capital should be given greater focus versus other capitals, Patrick said; "...consider all 6 capitals bearing in mind that focus will vary from one company to the next. There will also be a trade off..."
Ciara Reintjes, IRBA representative discussed the assurance of narrative information and reporting projections, emphasizing that; " professional judgment and skepticism is key..." View presentation
Session 5: What next for Africa in Adoption and implementation of the reform
Chairperson- Innocent Okwuosa, ICAN
Panelists- Goolam Modak, HoD- College of Accounting,University of Capetown; Nasser Saddiqi, Director of Corporate Finance & Market, Moroccan Authority of Capital Markets; Daniel Asapokhai, CEO Financial Reporting Council, Nigeria.
Daniel Asapokhai said " In the context of Nigeria, less than 25% of companies that produce sustainability reporting may contribute more than 75% of market capitalization." View presentation
Nasser Saddiqi discussed the Moroccan approach to Integrated Reporting, outlining the key challenges as capacity building, reporting non- financial matters, and external auditor gaps in defining IR standards." He added that; "currently 30 listed organisations in Morroco have adopted integrated reporting." View presentation
Goolam Modak presented high level insights on research carried out on behalf of the AIRC by the University of Cape Town, on where companies in Africa are in terms of IR. In responding to a question on the basis for the selection of the eight countries sampled in the research, Modak said; "There were 3 guiding principles for the selection; the presence of a strong Stock Exchange; A strong Professional Accountancy Organisation; and the maturity of reporting in the country." View presentation