Brussels pushes for quarterly reporting
Brussels plans to force European companies to report result every three months in a bid to protect investors and prevent Enron-like scandals.
The European Commission has proposed mandatory quarterly reporting as part of its transparency directive, which will be officially unveiled in the next few months, the Financial Times reported today.
Mark Armour, chairman of the FTSE 100 group of finance directors believes it will be a significant burden to many companies. He claimed quarterly reporting was ‘a step too far’ in a time when boards are focused on improving governance and implementing international accounting standards.
The new directive aims to set a single set of rules for companies in Europe’s largest markets including the UK, Germany and France. The EC believes quarterly reporting would increase transparency and allow investors to be better informed about performance.