Quality of corporate reporting still poor
Improvement requires a fuller understanding of purpose, according to new study
A significant proportion of companies aren't communicating effectively with their investors through their annual reports, new researched revealed.
Stakeholders want to encourage progress on the quality of corporate reporting because although many public companies understand improved reporting offers benefits, many continue to apply a tick box approach to reporting, according to consultants Black Sun.
Narrative reporting should be used more effectively so businesses are able to “tell their story better” when it comes to governance, remuneration and sustainability, the latest report said.
Black Sun recommends establishing a corporate reporting framework that offers clarity on the link between a company’s strategy, performance and risks.
Director of research and strategy Saillie Pilot said: “The key to improvement is to demonstrate the business benefits of reporting to those responsible for the business so that they grasp the opportunity to tell their story clearly, relevantly and succinctly.
“Whilst many companies understand this, our research shows many companies do not. At the moment only around one in five FTSE Plc boards are fully engaged in the preparation of their annual report, and only one in 20 FTSE 100 chairmen are reporting personally on board effectiveness and governance.”
KPMG recently urged businesses to improve their reporting practices partly on the basis that improved communication on risks can give CFOs an advantage when it comes to raising capital.
Read also - Ben Griffths CFO World blog on annual reports.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
CFOs should be involved in international deal negotiations from the startmore ..
Home Depot on Monday confirmed that intruders broke into its payment networks and accessed credit and debit card data of an unspecified number of customers who shopped at its U.S. and Canadian stores.more ..
In what could turn out to be another huge data breach, Home Depot on Tuesday confirmed that it is investigating a potential compromise of credit card and debit card data belonging to an unspecified number of customers.more ..
The companies exchanged sensitive commercial information on pricing, customers and contract negotiations, the Commission saidmore ..
And they're employing tried and tested above-board business methodsmore ..
Currency volatility has prompted a surge in the use of hedging tacticsmore ..