The KPMG Survey of Business Reporting examines 90 companies’ reports from around the world to question whether the historical focus of today’s annual reports is driving short term decision making by both investors and company management. It reveals evidence of a disconnect between the key drivers of business value and the content of reports.
Do you recognise the business presented in your Annual Report? Does it really tell your investors whether you’ve had a good year? Corporate reporting is evolving to provide investors with a broader perspective on business performance to address these questions. Whether you’re trying to stay ahead of reporting requirements, or just want to give a better account of your business’s performance, KPMG’s business reporting group can help you to align your reporting with what’s important to your business.
Narrative reporting content in Annual Reports – the ‘MD&A’ - is receiving growing focus from investors and regulators alike. Preparers are increasingly being asked to focus on the matters most relevant to the future of their business, rather than following a list of prescribed disclosures. The result is much greater emphasis on the business model and strategy as a basis for reporting. But building a report around your business strategy can be daunting without the comfort-blanket of a disclosure checklist. For those that succeed, the potential reward is a more concise report that is focused on the key drivers of business value – one that is better equipped to support an effective investor dialogue. We look at what makes a good report.
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