The new Integrated Reporting Framework is open for consultation for 90 days and has been welcomed by the Australian Council of Super Investors (ACSI).

According to the ACSI, the framework aims to "improve the standard and depth of company reporting by addressing all dimensions of the value creation process within organisations".

These include strategy, governance, business model and forward prospects, in addition to the traditional focus on historical financial reporting alone, the ACSI stated.

"The key test for this consultation is whether the framework we have developed is fit for purpose," Michael Nugent, the technical director of IIRC and key author of the report said.

"Do the fundamental concepts, guiding principles and content elements, provide the right structure to meet the needs of preparers and users of information?"

In the draft, IIRC calls on companies to disclose how their internal capital is deployed, more details of their business models and to report on their strategies for long-term value generation. 

"An integrated report is a concise communication about an organisation's strategy, governance, performance and prospects, in the context of its external environment," IIRC said in their draft document.

IIRC anticipated this document would be produced annually on top of firms' statutory financial reports.

Following the reporting difficulties during the global financial crisis (GFC), it is hoped this new framework, coupled with more transparency, will help investors better understand risks.

"The new framework holds great promise for improving the dialogue between companies and investors about the real drivers of long-term performance, risk and value," ACSI chief executive Ann Byrne said in a statement.

ACSI is one of five Australian representatives that have helped develop the framework, along with Regnan, AMP Capital, Colonial First State Global Asset Management and Victorian Funds Management Corporation.

The document is seen as a key milestone in revolutionising company reports.

"The market-led momentum behind integrated reporting is making its implementation inevitable," said IIRC chairman Mervyn King, who is also the current governor of the Bank of England.

The document will be finalised later this year.