Half the FTSE 100 still deliver OFRs
Study shows that despite government climb-down, companies are still producing OFRs
FTSE 100 companies are
still producing operating and financial reviews (OFRs) even though the
government scrapped the requirement at the end of 2005.
A study by business tank
Tomorrow’s Company
, released the surprise findings and found that companies had forged ahead
with the OFR because of the investment made in complying with the reporting
standard.
According to research in the report, 48 FTSE 100 companies still describe
their narrative report as an
OFR
. This, says Tomorrow’s Company, indicates that many companies have derived
tangible benefits from a more detailed reporting on business prospects than the
EU Business Review now generates.
‘We have long believed that the discipline of inclusive reporting is a spur
to better governance and better decision making, which benefits shareholders and
ultimately customers in the marketplace,’ said Mark Goyder, a director at
Tomorrow’s Company.
Further reading:
Medium-sized companies still see role for OFR
Companies Act to regulate directors’ behaviour
Annual reports double in size over ten years