Last week, the DTI’s working group released a consultation document, setting out the broad principles which directors should follow in deciding what information is ‘material’ and should be included in the OFR.
The working group recommends that the OFR include both historic and forward-looking events and trends, including facts and events, probabilities, as well as risks and opportunities.
Reacting to the launch of the document, Diane Hay, chief executive of employee share ownership body ProShare, said a mandatory OFR would benefit the private investor because it would ‘provide them with the kind of information they are looking for’.
Nigel Sleigh-Johnson, head of financial reporting at the ICAEW, said high quality reporting was ‘in the interests of both business and investors, but said the institute would be ‘scrutinising the proposals rigorously’.
But the document itself does not recommend what specific role auditors should play. Michael Hughes, chairman of audit at KPMG, said it was as yet unclear as to how the auditors will report ‘on the adequacy of the procedures adopted by directors in preparing the OFR’.
Consultation closes in September, with the working group due to publish a final report in December.
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day