RegulationAccounting StandardsRecent annual reports take OFR route

Recent annual reports take OFR route

Chancellor's OFR U-turn fails to dampen enthusiasm for narrative reporting

Despite chancellor Gordon Brown cancelling the Operating & Financial
Review (OFR), businesses have still moved towards more transparency in their
narrative reporting, according to a new survey.

The report by Black Sun, entitled ‘The First 23’, looked at the performance
of the first businesses obliged to meet the reporting requirement of the
Business Review- formed from the EU Accounts Modernisation Directive.

It found 48% of companies prepared an OFR, with the bulk of the others using
a business review format.

Although 57% are identifying key performance indicators, the figure drops to
26% in the case of non-financial KPIs.

National Grid and Land Securities reports were cited as best practice
examples of narrative reporting.

David Christopherson, managing director of Black Sun, said although the
chancellor’s decision to scrap the OFR has resulted in ‘significant
uncertainty’, it had created opportunities for companies to use reporting ‘as a
source of competitive advantage, particularly in a global economy where high
standards of disclosure establish trust with the capital markets, investors and
other stakeholders’.

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

1w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter