There is growing focus on Extended External Reporting (EER), which refers to reporting beyond information presented in the financial statements, including but not limited to: integrated reporting, sustainability reporting, management discussion and environmental, social and governance (ESG) reporting.
It is part of a growing acceptance of the fact that society has a new attitude towards corporate accountability and financial reporting is only part of the story. EER provides an opportunity to provide a more holistic view of the company.
As corporations increasingly embrace EER, so does the interest from regulators, standard setters and stakeholders increase.
In March 2019, the External Reporting Board (XRB) issued a position statement on EER which strongly supports the inclusion of EER information in the annual report to the extent that it is relevant to the intended users. We have asked Michele Embling, chair of the XRB and David Bassett, Deputy Director Accounting Standards at the XRB to talk about their interest in EER, its benefits and some of the challenges preparers might face. We also asked them to talk a bit about their navigational tool that they are developing to help preparers who are just embarking on the process.