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Question 2 3 a . 'Integrated reporting advances the proposition that sustainability reporting and financial reporting are inherently linked and thus would benefit from merging.
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a 'Integrated reporting advances the proposition that sustainability reporting and financial
reporting are inherently linked and thus would benefit from merging. 'Bob Massie, cofounder of
the Global Reporting Initiative
Required: Explain how integrated reporting merges sustainability reporting and financial
reporting.
marks
b Redemption Ltd is a retail trading company in Ghana. Jojo Kwamena member of ICAG is
the finance director and has been in this role for many years. Redemption Ltd has a yearend of
June each year. Jojo Kwamena is finalizing the financial statements for the year ended June
On one hand, the warehouse manager of Redemption Ltd has recently advised Jojo Kwamena of
a significant level of slowmoving inventory, and that the inventory in question is now more than
seven months old and per the company policy would usually have been written down some months
previously.
On the other hand, the shareholders of Redemption Ltd are trying to sell the company, and the
Chief Executive Officer CEO who happens to be the majority shareholder of Redemption Ltd
has told Jojo Kwamena that it is not necessary to write down the inventory values in the yearend
financial statements.
Iojo Kwamena is sure that the CEO wants the financial statements to carry an inflated inventory
valuation because he has found a prospective buyer for the company. The CEO has indicated to
Ioje Kwamena that, if the proposed deal is indeed successful, all employees will keep their jobs
including Jojo Kwamena and the finance director Jojo Kwamena will receive a pay rise. Required: Explain how the finance director could potentially act in order not to breach the
fundamental principles of the IFAC's code of ethics.
marks
Total marks
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