OFR delay irritates investors
New research predicts investors will be disappointed by the proposed delay to the operating and financial review with many saying annual reports in their current state are becoming less useful.
Link: Auditors welcome OFR delay
In a new poll investors and buy-side analysts said that despite the rise in the importance of annual reports, the increased volume of information was less useful and more complex.
Issues cited as vital to investor needs include details on future objectives and progress against objectives with 60% respectively. Financial growth was considered the most important with 78%. Information on strategy also gained large support with 58%.
‘Traditionally the annual report has been about providing statutory information. However, the recent rise in compliance legislation has forced companies to include more detail at the expense of clarity and quality,’ said Jeremy Sice, managing director of corporate design and communications specialists SAS, which carried out the survey.
Over two thirds said the chairman’s and CEO’s statements were fundamental in their analysis of a company.