FINANCIAL REPORTS should shed 30% of their bulk in order to improve shareholder communication, according to a report by ICAS and New Zealand institute the NZICA.
The joint working party said that swathes of financial data are “hindering, not helping”, describing it as “excess baggage” that deflects attention from the issues that really matter.
Co-chair Isobel Sharp (pictured) of Deloitte called it a “massive spring cleaning exercise…helping preparers be bolder in deleting details which are simply not important to readers of their financial statements”.
Companies tempted to pack in irrelevant information could see costs rising and risk obfuscating the essentials, making it harder for users to interpret financial reports.
However, investors might not agree. Representative body the CFA Institute questioned the importance of cutting clutter in financial statements, saying that too much focus on streamlining comes at the expense of integrating components and improving their quality.
The Aldermore Future Attitudes report highlights that 1.04m firms with under 250 employees have been affected by a lack of finance in the past 12 months
One of the bigger announcements of the final Spring Budget is the raising of Class 4 NICs for the self-employed
More details are expected to be announced at the Autumn Budget this year, with consultations taking place before the next revaluation in 2022
Unincorporated businesses under the VAT threshold given an extra year to prepare before MTD becomes mandatory