Report criticises FTSE-100 annual reports
Companies looking for examples of best practice in preparing annual reports should look outside the FTSE-100 for meaningful examples, according to research carried out by the foundation for performance measurement.
Intended to be a source of best practice in the annual reporting framework, the ‘Well Rounded Annual Report’, published by the Foundation for Performance Management, concludes the quality of data in company annual reports remains poor. No FTSE-100 company can consistently claim to produce data which is useful and innovative in its report, it states.
Telecoms company Orange was the best performer in the FTSE-100, followed closely by J Sainsbury and SmithKline Beecham, all of which provided regular data, often in the form of trends over time.
The research will provide guidance on the types of data that shareholders need to form an accurate understanding of corporate operations.
Currently in draft form, the report will shortly be considered by foundation members and the final version is due to be published early next year.