Businesses need to play an integral part in the development of corporate reporting if they are to meet the needs of investors and maintain a high reputation, according to Big Four firm PricewaterhouseCoopers.
The advice comes with the publication of the firm’s fifth annual trends in corporate reporting study, which has found that an emphasis on a clear presentation of the right financial information and reporting on wider business performance are key issues that need to be addressed.
‘Stakeholders have a legitimate interest in useful, intelligible and relevant financial information and are, in fact, demanding it,’ said David Phillips, value reporting partner at PwC.
‘Now is the time to re-examine the adequacy of the existing reporting model and assess how well it serves the need of companies, investors and other stakeholders.’
The report recognised that the new operating and financial review will help to provide the right, broad framework for the inclusion of non-financial performance information.
However, it stressed that it wasn’t necessarily about providing more information for the shareholder, but better information.
‘Business is clearly going through a period of experimentation on the shape of corporate reporting and grappling with issues, such as the optimal level of information that should be made available to stakeholders,’ added Phillips. ‘It is clear that an accurate presentation of a financial statement is no longer enough.’