Which Statement Concerning Integrated Reporting (IR) Is Not True

question 20

Multiple Choice

Which statement concerning Integrated Reporting (IR) is not true?

• A) IR enables an organisation to communicate its value creation over time.
• B) An integrated report is a detailed and long written report provided for the benefit of shareholders.
• C) An integrated report is built around an organisation's strategy.
• D) IR provides information over the short, medium and long term.

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Definitions:

Average Operating Assets

The average value of the assets involved or used in the operating activities of a company over a given period, typically calculated as the average of the opening and closing balances of these assets.

Residual Income

Earnings that exceed the minimum required return on investment; it's what remains after all costs and expenses have been deducted.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments, calculated as net profit divided by the cost of the investment.

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage.