Corporate reporting reform continues to gain momentum in Australia and the rest of the world, as organisations look to better communicate how they are creating long term value for their shareholders, and not just short term earnings. For the third time, KPMG has undertaken an analysis of reporting trends in the ASX 200 for the year to 30 June 2016.
Corporate reporting – evolution and integration shows how Australian listed organisations, and other large scale Australian organisations are improving their reporting, and progressing along the Reporting Continuum, first de-cluttering their Annual Report, then focusing on providing shareholders with more insightful information on a journey towards integrated reporting.
Our analysis confirms that across the ASX 200, the majority of organisations have now performed some form of de-cluttering in their Annual Financial Report and embraced the opportunity to move the Corporate Governance Statement to the corporate website, the challenge for many now is how to take the next step.
In this publication, we provide examples of what other Australian companies have done to progress along the Reporting Continuum, including development of a corporate reporting strategy and restructuring their reporting portfolio in a number of cases reducing the number of reports whilst improving the clarity and relevance of the information reported for their shareholders.
A number of leading organisations have focused their narrative to explain more on how they create longer term value, and a few have moved to integrated reporting. The case study on Lendlease’s journey to date in issuing its first integrated report through the OFR in the 2016 annual report, and the benefits that they believe the process has delivered, will provide others with confidence to review their current reporting strategy with a view to implementing change that delivers benefits to the organisation as well as its shareholders.