HSBC chief accountant critical of quality of risk reporting
Quality of the risk analysis that companies publish is "weak" according to HSBC's group chief accounting officer
Quality of the risk analysis that companies publish is "weak" according to HSBC's group chief accounting officer
COMPANIES ARE FAILING to disclose and analyse risk properly, according to a senior accountant at HSBC.
Russell Picot, group chief accounting officer at HSBC, criticised the quality of the risk analysis that companies publish as being “weak” in a report on the future of corporate reporting published by KPMG.
“You get a long description and a lot of numbers, but I think there are not many good examples of disclosures showing how a company has responded to changing risks and its use of relevant metrics,” he said.
One of many influential figures in the world of corporate reporting and accounting standards featuring in the report, Picot argued the current reporting model for all industries, not just financial services, is in need of improvement.
“In most cases, ticking the compliance box is something that financial reports do extremely well, but they are not conveying information in a clear and concise way,” Picot said.
Picot also expects to see the evolution of a dual reporting structure: one document that is driven by the need to comply with regulations and an alternative shareholder document that is shorter than the compliance-driven report.
The latter would be the one that deals with, among other things, strategic, environmental, social and governance issues. This second report would be less constrained by the regulations governing financial statements.
More about:
The numbers you crunch tell a story. Your expertis...
11yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View article75% of FTSE 350 audits assessed as good or requiring limited improvements, failing to meet the FRC's 90% target Read More...
View articleImprovements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC) Read More...
View articleThe FRC has highlighted the things directors should consider when preparing their forthcoming half-yearly and annual financial reports post Brexit Rea...
View articleThe amendments to FRS 101 are limited, and predominately provide exemptions from many of the disclosure requirements of IFRS 15 Read More...
View articleAs part of Accountancy Age's Young Professionals Day, we take a look at the key skills auditors will need for the future Read More...
View articlePell admits he was “a bit surprised” by the letter but believed the audit would re-start after a number of issues have been resolved Read More...
View articleICAEW warns of "worrying degree of confusion" over FRS 101 Read More...
View articleFRC guidance makes clear requirements relating to going concern and solvency and liquidity risk Read More...
View article