Financial stakeholders are increasingly using non-audited sources of information to get a better picture of company performance.

The financial communication challenge, a report produced by Tapestry Networks for Ernst & Young, found that financial reporting complexities and continuing volatility in the economy meant stakeholders were turning to managements’ analysis of company performance and forecasts, in addition to key operational performance metrics, to help them better understand company performances.

John Flaherty, head of assurance, UK & Ireland, at Ernst & Young, said: “Financial stakeholders now want a complete overview of company performance. Audited financial statements remain highly important but this latest research demonstrates the need for businesses to implement a new level of communication if trust is to be restored in financial statements. This could help to bridge the mistrust created by the financial crisis.”