Deloitte: 78% of company interim management statements miss mark
More than three-quarters of interim management statements lack crucial content, according to Deloitte
ALMOST 80% of companies are falling short when it comes to interim management statements (IMS), according to a new survey by Deloitte.
Half-year reports have been obligatory since 2007 and are designed to keep stakeholders up to date with listed companies’ progress, saving them a 12-month wait for the full annual report.
Of the 130 corporates and investment trusts examined, 78% failed to meet content requirements, primarily due to a dearth of data on their financial position.
Corporates’ performance has slipped with just 22% meeting all content requirements, 6% less than last year. Investment trusts were far more successful, with 77% hitting all information targets.
Audit partner Isobel Sharp (pictured) said: “While the rules do not require companies to discuss going concern and liquidity matters in IMS, it is encouraging to see companies openly talking about these risks facing the business.”
Economic uncertainty continues to plague corporates with 53% saying it remains a major risk, while weak consumer confidence and soft spending also have them worried.
The survey also showed corporates are drifting away from pure narrative reporting, with a higher proportion using numbers to illustrate financial performance.