An Evaluation of the Feasibility and Execution of Integrated Reporting by National Public Entities in South Africa
Year: 2025
Type: article
Abstract: Purpose: This study seeks to assess the extent to which South African NPEs have adopted the International Integrated Reporting Framework when preparing their annual financial reports (AFR). The IIRC published a revised framework in 2021 to guide organisations on how to incorporate in their overall content into IR. This requires a new disclosure framework that facilitates integrated thinking, decision-making and value creation methods that give stakeholders a complete picture of the entity. Methods: The study employed a qualitative approach, utilising secondary data from AR (a published by NPEs in South Africa. Disclosure checklist, scoring system and content analysis was used to assess whether NPEs have applied IR framework disclosure recommendations when preparing their AR. The disclosure checklist and scoring system was used to compare the AFR of South African NPEs for fiscal years ending 2024 against the key elements suggested by revised IR Framework. Results: The study's results showed that NPEs disclosure expectations relating to IR have significant gaps in quality and content. Moreover, overall results showed that although South Africa may have proper awareness in IR reporting, the practical and disclosure of IR framework are still an issue on NPEs. Contributions: Results provide managerial implications. Poor disclosure of IR framework suggests lack of understanding of value creation within NPEs due to reliance on traditional reporting as compared to adoption of IR framework. Managers should establish internal awareness strategies emphasizing the necessity to adopt full IR framework to help NPEs develop long-term value and allocate resources.
Authors: Phaswana Mmatli, Mpho Thithi
Institution: Central University of Technology
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
Funder: Central University of Technology
OpenAlex ID: W4416138903