We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

Quality of corporate reporting still poor


Improvement requires a fuller understanding of purpose, according to new study

Article comments

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:

Comments

Quality of corporate reporting still poor
Risk

Hidden risks in the supply chain

Hidden risks in the supply chain

An unforeseen disaster can halt production and lead to share price falls and reputational damagemore ..


Taylor Wimpey CFO warns against UK withdrawal of EU

The group FD said "barriers would go up" and that would have an impact on Taylor Wimpeymore ..

RBS fined for IT failures after £25m trading losses

Hong Kong regulator fines bank £450,000more ..

Bank of England plans new round of cyber tests for banks

The Bank is to focus on individual banks’ security systemsmore ..

Energy risk: How data is eating up all the energy

Any failure in energy supplies to data servers can result in severe consequencesmore ..

Why BYOD needs to be on every CFO’s agenda

The Software Alliance explains why BYOD can be a legal nightmare for businessesmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

Advertisement

* *