Regulation is stifling effective communication between companies and the
outside world, a big four reporting chief has warned.
Speaking less than a week after
Accounting Standards Board (ASB) found companies across the board often fail to
communicate to investors, David Phillips, senior corporate reporting partner
at PricewaterhouseCoopers (PwC), said regulation is standing in the way of
effective corporate reporting.
He said his own study has found regulation often acts as a “barrier”,
stifling effective communication.
“We found that unfortunately the demands of the current regulatory framework,
with its emphasis on compliance, all too often places a barrier in front of
effective communication to the market,” he said.
Phillips said the ASB’s review should prompt companies to think much more
about how they can differentiate themselves through reporting.
“From our experience of advising companies, the external reporting challenge
helps a business to face up to important internal issues that need to be
addressed, such as whether its strategy is widely understood or whether there is
a linkage between success measures and how these are driving the culture and
behaviours of the organisation,” he said
“What is needed are company reports that reflect the individual personality
of the organisation, not a characterless template.”
Read the full ASB report:
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