Corporate reporting needs to evolve if it is to provide a more complete picture of business value. A more focused approach to narrative reporting could provide the solution.
Are we asking too much of financial reporting? It plays an essential role in explaining past performance but on its own it cannot provide a complete picture of business value. More is needed to help readers understand how management is driving the business forward and how changes in the business environment might present new opportunities and challenges. A ‘New Era for Corporate Reporting’ looks at how the gap between current reporting practice and investor needs could be closed.