CIMA says shareholders will benefit from OFR
Institute says decision to scrap report was 'curious'
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.”