ACCA and the Netherlands Institute of Chartered Accountants (NBA) have published a report outlining the current and future application of capitals, such as financial and intellectual capital, in Integrated Reporting (IR) which highlights their importance for the viability of an organisation's business model.

The report comes ahead of the International Integrated Reporting Council's (IIRC's) global consultation about the future of IR, due to be published on the 16 April 2013. It suggests new proposals for improving the categorisation and descriptions of capitals adopted by the IIRC and provides more background to the basic concepts to help in their practical application.

The IIRC has identified capitals as financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital, and natural capital.

Rachel Jackson, head of sustainability at ACCA and a member of the IR steering group said: 'Although companies depend on the six capitals to different extents, collectively these capitals affect the long term survival of any company and influence its value creation. Reporting on them is therefore a crucial element in future corporate reporting and will be necessary to meet stakeholders' expectations.'

The report stresses the need to place capitals in a strategic context, in order to support investors who make their investment decisions based on material about a company available to them.

Richard Martin, head of corporate reporting at ACCA said: 'The key point about IR is to communicate value, giving a broader explanation of performance than traditional reporting, and identifying and reporting on capitals, either via metrics or being part of the narrative.'

Get the latest news in your inbox. Sign up to receive the Accountancy Live e- newsletter, HERE