The Financial Reporting Council’s (‘FRC’) financial reporting lab has conducted a study of the annual reports published in 2016 from 313 companies that were in the FTSE 350 as at 31 December 2015.
The report compared the dividend disclosures in 2016 to the prior year annual report.
The report identified improvements with 58% of the FTSE 100 making some level of reference to distributable profits/reserves and 48% disclosing the specific amount available for distribution. However, this was not reflected in the FTSE 250 where only 30% of companies made reference distributable profits/reserves.
The FRC lab report provides some examples of what they view as good disclosure and identifies four areas where improvements can be made:
The full FRC lab report is avialble here
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