Assignment instructions.
Demonstrate the ability to work as part of an accounting team in the preparation of an integrated annual report for a group of entities.
Students should prepare an integrated annual report for Caribbean Producers (Jamaica) Limited for the financial year ended December 31, 2025.
Students are allowed to use artificial intelligence only in the preparation of the Chairperson’s Report.
Not to prepare any financial statements as all of that has been given. We will need to do a 5 year comparison of EPS etc. as indicated below. The information being pulled will reflect as is as this is the company report and we are not tweaking anything. The mission and vision statement is to be given back exactly as is. Do not reword anything.
Integrated Annual Report A report that is prepared in accordance with the Integrated International Reporting Council (IIRC) framework is an integrated report.
• The integrated report will provide information on the entity’s business model, its strategies, and the risks it faces. This will ensure a strategic focus on the creation of value.
. •An integrated report will provide clarity on the relationship between financial and non-financial performance and its impact on value creation.
•An integrated report provides a holistic picture of the entity.
NB: The company has an annual report for 2024
Contents of an Integrated Annual Report
• Table of Contents
•Notice of Annual General Meeting – In annual report. Decide on a time and date. Look @their notice and prepare something similar
Responsibility for Integrated Report
•Organizational overview and external environment.
• Stakeholder Relationships
•Governance – look at Sagicor annual report to incorporate what they have there
•Business Model
•Risks and Opportunities
• Strategy and Resource Allocation – look @annual report for insight. Also look at financial statements, and stock exchange to see if they are reporting that a director retired etc. that way you get current info- it’s a public company.
• Performance
•Outlook
•Basis of Preparation and Presentation- look at financial statements to see the basis in which they were prepared. International reporting standard.
•Corporate Social Responsibility – go to the company’s website and social media to see what they are involved in.
•Chairperson’s Report
•Chief Executive Officer’s Report
•Directors’ Report- look at audited financial statement – what is profit? What is the taxation, how much dividends ? look at consolidated statement- change of equity
•Auditors’ Report
•Consolidated Statement of Comprehensive Income – all these in yellow, are already prepared just extract from the lasts audit doc
•Consolidated Statement of Changes in Equity
•Consolidated Statement of Financial Position
•Consolidated Statement of Cash flows
•Company Financial Statements
•Notes to the Financial Statements
•Statistics- do a comparison of 5 years on 3 areas (from 2025 going back) on dividends , earnings per share and sales of the company
•Ten Largest Shareholders – can be found in notes to financial statements
•Shareholdings of Directors and Officers- in financial statements
•Proxy Form- create this. When creating, refer to notice of Annual general meeting. For eg if there were 7 resolutions to be passed then proxy form must have 7 boxes to be ticked.
Notice of Annual General Meeting
•Date, time and location of meeting
•Resolutions
•Any other business
Nb: the company secretary must prepare the notice of annual general meeting and sign
Responsibility for Integrated Annual Report
• You could write something like this.
• “The Board of directors acknowledges that it is ultimately responsible for ensuring the integrity of the integrated annual report. “
• “The Board of directors was assisted by the Audit Committee and further supported by management, which convened and contracted the relevant skills and experience to undertake the reporting process and provided management oversight. The integrated report was prepared under the direct supervision of the” Group Financial Controller.
Organizational Overview and External Environment
Look for mission and vision of company
“The organizational overview should inform us about what the entity does, which would encompass its mission and vision, therefore identifying the entity’s purpose and intention. “ Identify critical human resources. Use Jamaican central bank and Statin obtain this info/ as a source
“The external environment provides information about the context under which the entity operates and will therefore enlighten us about, economic conditions, technological changes, environmental challenges and societal issues. “ Information should be provided on material factors in the external environment that can impact the entity’s ability to create value in the short, medium and long term and its response to these factors.- also use IMF and Planning Institute of Jamaica.
Additional breakdown of what sections should include:
External Environment Some items to consider:
• Economic conditions
• Technological changes
•Information on societal issues
• Political environment
• Position in the value chain
•Industry trends.
Some items to consider continued:
• Competitive landscape and market positioning (consider such factors as, the threat of new competition, substitute services or products, bargaining power of suppliers and customers, and the level of competitive rivalry).
Use Porter’s Five Forces Classification Framework
• Horizontal competition
— Rivalry among Existing entities
— Threat of New Entrants
— Threat of Substitutes
• Vertical competition
• Supplier Power
• Buyer Power
Some items to consider continued:
• Legislative and regulatory environment under which the entity operates
•Micro conditions and macro conditions- bank of Jamaica as source
•Industry trends.
• Speed and impact of technological changes
•Information on environmental issues
Governance “The section on governance should identify the entity’s governance structure and how this structure supports the entity’s ability to create value in the short, medium and long term.”
Governance Some items to consider:
•Ability to create value in the short, medium and long term
•Any regulatory requirements and if so, its impact on the entity’s governance structure (does it exceed the regulatory requirements).
•The Board of Directors responsibility for promoting and enabling innovation
•Senior Management and Directors skills, such as, competence and experience
•Senior Management and Directors diversity such as, gender. Mechanisms for dealing with integrity and ethical issues
•Relevance of remuneration and incentives on value creation
•Governance processes for formulating strategy, making strategic decisions, monitoring strategy, monitoring culture and influencing strategy
•Attitude towards risk and its approach to managing those risks
Business Model
•“The business model is usually graphically depicted and explains the value creation process. The business model shows us the system of transforming inputs into outputs (products and services) and outcomes (customer satisfaction, brand loyalty, environmental effects, social effects, employee morale, organizational reputation and cash flows). “
• “An entity may employ more than one business model if it operates in different market segments.”
Risk and Opportunities
•“Information on material specific risks and opportunities that impact the entity’s ability to create value in the short, medium and long term,” and how the entity will mitigate these risks.
• “The entity’s overall assessment of the likelihood of these specific risks and opportunities coming to fruition, indicating the circumstances that may bring it to fruition and the estimated magnitude of its effect on the entity.”
Strategy and Resource Allocation •Disclose the strategic objectives for the short, medium and long term, and the measures being employed to achieve those objectives in the short, medium and long term, without disclosing the underlying tactics to competitors. • Identify the key performance indicators. • Indicate the impact of the entity’s strategies and resource allocation on the society and the sustainability of the environment it is operating in.
Performance •Disclose the extent to which the entity’s strategic objectives have been achieved for the period under review and if not, why not. • Provide a trend analysis of at least five years for key KPIs.
Outlook •The information provided should be based on “sound, realistic and transparent analysis, on the material challenges and uncertainties, as well as the opportunities the entity is likely to face in pursuing its strategies, as well as an explanation of the potential implications for its business model and future performance.” • The section should not breach any legal or regulatory requirements. The information should be presented in a manner that it is not interpreted as providing stock market guidance or seen as guaranteeing future financial performance.
Basis of Preparation •Disclose how the entity determines what matters to include in the integrated report and how such items are quantified or evaluated. • Disclose the “materiality determination process along with key judgments, a summary of the frameworks and methods used to quantity or evaluate material matters, the key personnel charged with governance for material matters.”
Statistics- Five (5) year comparison
•Earnings Per Share •Dividend Per Share •Return on Equity Capital •Inflation Rate
Chairperson’s Report •Review of economic conditions •Review of performance of the group •Future prospects for the group
Directors’ Report
•Profit before taxation
•Taxation
•Profit after taxation
•Dividends declared during the year
•Transfer to reserves
•Directors retiring and proposed directors
•Whether auditors are willing to continue
Other Things to Include •Company Logo •Summary Financial Information
Auditors’ Report (already prepared) •Opinion- Qualified or unqualified – Whether the financial statements give a true and fair view of the company and the group • Basis for Opinion (compliance with ISA and independent in accordance with IESBA) • Key Audit Matters • Other Information • Management’s Responsibilities • Auditors’ Responsibilities • Regulatory Requirements • whether proper accounting records were kept • Engagement Partner