OFR announcment receives mixed reactions from auditors
Auditors claim "we have come full circle"
Auditors had mixed reactions to the resurrection of the Operating and
Financial Review (OFR),
announced
by the coalition government today.
In their five year program, the coalition announced it would “reinstate an
Operating and Financial Review to ensure that directors’ social and
environmental duties have to be covered in company reporting”.
Tim Copnell, associate partner at Big Four firm KPMG, said he feels the
business community has “come full circle on this, and effectively stayed in the
same place”..
“The OFR was replaced with the Business Review by the previous government –
but the two are virtually identical in terms of content,” he said.
“Any extra reporting requirements at a time when businesses are focusing on
the recovery are unlikely to be popular.”
Doug Johnston, director in the climate change and sustainability services
team, at Ernst & Young, welcomed the news and said the move would promote
greater understanding of environmental, social and governance issues.
“There is significant room for improvement in the way that companies
articulate how their operations are impacted both positively and negatively by
these factors – key to stakeholders’ gaining a broader understanding of the
business issues and risks,” he said.
“In a more uncertain world, the OFR should introduce welcome transparency
into the impact of critical non-financial issues on businesses.”
Further reading:
Senior
auditors renew calls for liability reform