Assessment 6 - PART B – CASE STUDY
Due date – 28 June 2024
This is a group assessment and must be completed by all members of the group.
NOTE THE FOLLOWING SUBMISSION INSTRUCTIONS
1. All submissions must be typed.
2. Use Font Arial and Font size 11
3. References should be made to page numbers in the <IR> and AFS.
4. Provide a list of references used, in line with the Harvard Referencing method.
Part 1
The seven guiding principles of the Integrated Reporting Framework (IRF) which impact
the presentation of the <IR> are as follows:
- Strategic focus and future orientation
- Connectivity of information
- Stakeholder relationships
- Materiality
- Conciseness
- Reliability and completeness
- Consistency and comparability
The qualitative characteristics of the IFRS Conceptual Framework (IFRS) which impact
the presentation of the annual financial statement (AFS) are as follows:
- Relevance
- Faithful Representation
- Comparability
- Verifiability
- Timeliness
- Understandability
,The Integrated Reporting Framework is mainly concerned with the presentation of an
entity’s financial and non-financial information in the integrated report of a company which
communicates its value creation process. However, the IFRS Conceptual Framework is
mainly concerned with the presentation of an entity’s financial information in the AFS.
Required:
Select the <IR> including the financial statements (AFS) of a JSE-listed (Johannesburg
Stock Exchange | JSE) company of your choice.
The <IR> and AFS should be for the financial year ending 2022.
1. Compare and/or contrast any of the seven guiding principles of the Integrated
Reporting
Framework (IRF) with any one of the qualitative characteristics of the IFRS Conceptual
Framework (IFRS). Your comparison and contrast must be practically applied using actual
examples from the 2022 <IR> and AFS your group selected.
In your solution cover the following topics as your headings:
- Remuneration
- Accuracy of information
- Sustainability issues
- Whether the information reflects the needs of the users of the <IR> and AFS.
Company
Sasol Limited
For this case study, we have selected Sasol Limited, a prominent JSE-listed company, for
our analysis. We will compare and contrast the guiding principles of the Integrated
Reporting Framework (IRF) with the qualitative characteristics of the IFRS Conceptual
Framework using actual examples from Sasol’s 2022 Integrated Report (<IR>) and
Annual Financial Statements (AFS).
Remuneration
IRF Principle: Connectivity of Information
IFRS Qualitative Characteristic: Understandability
, Comparison:
The principle of Connectivity of Information in IRF emphasizes the integration of various
factors that influence the company’s value creation process. This means remuneration
details should be linked to the company's overall performance, strategy, and future
outlook. In contrast, the IFRS’s characteristic of Understandability focuses on presenting
information in a clear and concise manner so that users can comprehend it easily.
Example from Sasol’s 2022 Reports:
IRF (Integrated Report): Sasol’s integrated report details the remuneration policy and its
alignment with the company’s strategic objectives. For instance, the report explains how
executive bonuses are tied to achieving specific sustainability targets and financial
performance, providing a holistic view of how remuneration is connected to overall
corporate strategy (Sasol Integrated Report, 2022, p. 45).
IFRS (AFS): In the AFS, remuneration is presented in a more straightforward manner with
detailed tables and figures, ensuring clarity and transparency. This approach ensures that
all stakeholders, including investors and regulators, can easily understand the
remuneration components and their financial implications (Sasol AFS, 2022, p. 89).
Accuracy of Information
IRF Principle: Reliability and Completeness
IFRS Qualitative Characteristic: Faithful Representation
Comparison:
Both the IRF principle of Reliability and Completeness and the IFRS characteristic of
Faithful Representation aim to ensure that the information provided is accurate and
thorough. However, IRF focuses on a broader spectrum, including non-financial
information, while IFRS emphasizes precise and truthful representation of financial data.
Example from Sasol’s 2022 Reports:
IRF (Integrated Report): The integrated report includes a comprehensive discussion of
Sasol’s financial performance, governance, and risk management practices. It also covers
sustainability metrics and future outlook, ensuring that stakeholders receive a complete
and reliable picture of the company’s overall performance (Sasol Integrated Report, 2022,
p. 67).
IFRS (AFS): The financial statements adhere strictly to the principle of faithful
representation, with detailed notes and disclosures ensuring that all financial information
is accurate and free from material misstatements. This includes audit reports and
compliance statements which reinforce the reliability of the presented data (Sasol AFS,
2022, p. 123).
Due date – 28 June 2024
This is a group assessment and must be completed by all members of the group.
NOTE THE FOLLOWING SUBMISSION INSTRUCTIONS
1. All submissions must be typed.
2. Use Font Arial and Font size 11
3. References should be made to page numbers in the <IR> and AFS.
4. Provide a list of references used, in line with the Harvard Referencing method.
Part 1
The seven guiding principles of the Integrated Reporting Framework (IRF) which impact
the presentation of the <IR> are as follows:
- Strategic focus and future orientation
- Connectivity of information
- Stakeholder relationships
- Materiality
- Conciseness
- Reliability and completeness
- Consistency and comparability
The qualitative characteristics of the IFRS Conceptual Framework (IFRS) which impact
the presentation of the annual financial statement (AFS) are as follows:
- Relevance
- Faithful Representation
- Comparability
- Verifiability
- Timeliness
- Understandability
,The Integrated Reporting Framework is mainly concerned with the presentation of an
entity’s financial and non-financial information in the integrated report of a company which
communicates its value creation process. However, the IFRS Conceptual Framework is
mainly concerned with the presentation of an entity’s financial information in the AFS.
Required:
Select the <IR> including the financial statements (AFS) of a JSE-listed (Johannesburg
Stock Exchange | JSE) company of your choice.
The <IR> and AFS should be for the financial year ending 2022.
1. Compare and/or contrast any of the seven guiding principles of the Integrated
Reporting
Framework (IRF) with any one of the qualitative characteristics of the IFRS Conceptual
Framework (IFRS). Your comparison and contrast must be practically applied using actual
examples from the 2022 <IR> and AFS your group selected.
In your solution cover the following topics as your headings:
- Remuneration
- Accuracy of information
- Sustainability issues
- Whether the information reflects the needs of the users of the <IR> and AFS.
Company
Sasol Limited
For this case study, we have selected Sasol Limited, a prominent JSE-listed company, for
our analysis. We will compare and contrast the guiding principles of the Integrated
Reporting Framework (IRF) with the qualitative characteristics of the IFRS Conceptual
Framework using actual examples from Sasol’s 2022 Integrated Report (<IR>) and
Annual Financial Statements (AFS).
Remuneration
IRF Principle: Connectivity of Information
IFRS Qualitative Characteristic: Understandability
, Comparison:
The principle of Connectivity of Information in IRF emphasizes the integration of various
factors that influence the company’s value creation process. This means remuneration
details should be linked to the company's overall performance, strategy, and future
outlook. In contrast, the IFRS’s characteristic of Understandability focuses on presenting
information in a clear and concise manner so that users can comprehend it easily.
Example from Sasol’s 2022 Reports:
IRF (Integrated Report): Sasol’s integrated report details the remuneration policy and its
alignment with the company’s strategic objectives. For instance, the report explains how
executive bonuses are tied to achieving specific sustainability targets and financial
performance, providing a holistic view of how remuneration is connected to overall
corporate strategy (Sasol Integrated Report, 2022, p. 45).
IFRS (AFS): In the AFS, remuneration is presented in a more straightforward manner with
detailed tables and figures, ensuring clarity and transparency. This approach ensures that
all stakeholders, including investors and regulators, can easily understand the
remuneration components and their financial implications (Sasol AFS, 2022, p. 89).
Accuracy of Information
IRF Principle: Reliability and Completeness
IFRS Qualitative Characteristic: Faithful Representation
Comparison:
Both the IRF principle of Reliability and Completeness and the IFRS characteristic of
Faithful Representation aim to ensure that the information provided is accurate and
thorough. However, IRF focuses on a broader spectrum, including non-financial
information, while IFRS emphasizes precise and truthful representation of financial data.
Example from Sasol’s 2022 Reports:
IRF (Integrated Report): The integrated report includes a comprehensive discussion of
Sasol’s financial performance, governance, and risk management practices. It also covers
sustainability metrics and future outlook, ensuring that stakeholders receive a complete
and reliable picture of the company’s overall performance (Sasol Integrated Report, 2022,
p. 67).
IFRS (AFS): The financial statements adhere strictly to the principle of faithful
representation, with detailed notes and disclosures ensuring that all financial information
is accurate and free from material misstatements. This includes audit reports and
compliance statements which reinforce the reliability of the presented data (Sasol AFS,
2022, p. 123).
