Investor Insights: Future of Corporate Reporting

Investor Insights: Future of Corporate Reporting

Corporate reporting could do more to meet investors’ needs – we explore how.

Corporate reporting could do more to meet investors’ needs – we explore how.

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 shareholders understand how management is driving the business forward and how changes in the business environment might present new opportunities and challenges.

Investor presentations have evolved to address part of this reporting gap by addressing a more forward looking perspective on business value. There is a danger with this approach, though. The quality and content of these presentations varies, and they may address only some aspects of business value. Boards may also be concerned with the communication of some of their most price-sensitive messages being driven through less formal reporting channels without the backstop of the annual report.

A better approach lies in the narrative reporting content of the annual report. It is time for this to evolve to provide a picture of how business value is being developed and protected. We need to see reports built around a company’s unique business model, addressing the unique factors that drive longer-term value for that business.

In practice this means:

  • more focus on the operational drivers of performance; 
  • more focus on the resources on which the business depends; and 
  • providing readers with the information to form their own views on future performance.

Explore the links and publications on this page for more views and information.   

 
 

Connect with us

KPMG’s new-look website

KPMG’s new-look website

Better Business Reporting

Better Business Reporting

Providing investors with a longer term perspective on business performance through your narrative reporting / MD&A.

A practical guide to the strategic report

A practical guide to the strategic report

Strategic Reports are evolving to provide greater insight into business performance and prospects.

Aligning bank reporting with shareholder value

Suggestions to help banks' financial reporting better support shareholder value analysis.

 
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Viability assessments

Improving year 2 viability disclosures: A survey of current practice and a practical guide

 
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Investor relevant: CSR Reporting

Corporate responsibility reporting could do more to add value for investors.

 
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A New Era for Corporate Reporting

Corporate reporting needs to evolve to provide a more complete picture of business value.

 
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Integrated Reporting

Good reporting should enable the capital markets to better understand a company's strategy

 
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Investor Insights: Value of Audit

Developing audit to meet investor needs, including our approach to sharing audit insights.

 
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Investor Insights: (Re)Shaping Stewardship

Supporting effective engagement between investors and the managers of their companies.

 
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Investor Insights homepage

Latest developments and perspectives on corporate reporting and stewardship for investors.

 
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