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.



Quality of corporate reporting still poor

Energy risk: How data is eating up all the energy

Energy risk: How data is eating up all the energy

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

EMEA corporate upgrades outnumber downgrades, says Moody’s

Rating agency notes first such instance since the financial crisis yearsmore ..

World hit by record wave of 'mega' data breaches in 2013

Over half a billion records compromisedmore ..

CFOs bullish on UK growth prospects

Finance chiefs' appetite for risk has doubled that of a year agomore ..

Why BYOD needs to be on every CFO’s agenda

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

Audits key to managing cyber risks

Cybersecurity controls and reporting procedures should be assessed annuallymore ..

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
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 ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *