CIMA says shareholders will benefit from OFR

The Chartered Institute of Management Accountants has backed calls for an
operating and financial review to be part of the annual report at a corporate
governance conference in London.

CIMA chief executive Charles Tilley told delegates at the London Stock
Exchange’s 3rd Annual Corporate Governance Conference that the chancellors
reasons for canceling a mandatory OFR – that it would save business £33m – was
curious when set against a UK stock market value of £1.3tn.

Tilley said a ‘very achievable reduction in the cost of capital’
would justify a mandatory OFR.

In a speech entitled: ‘OFR: Best practice or gold-plating?’ Tilley said:
“Confusing the OFR with a reduction in bureaucracy risks losing the benefits it
would deliver to all stakeholders, particularly shareholders.

‘The OFR is more an opportunity than a challenge.”

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