Financial reporting plays an essential role in explaining past performance but it cannot provide a complete picture of business value on its own. Shareholders are increasingly looking to narrative reporting as a means to go beyond this ‘business as usual’ perspective. The challenge for report preparers has been to develop their existing reporting to provide this in the absence of a compliance framework that defines exactly what needs to be reported.
Narrative reporting is playing an increasingly important role in the annual report. Companies can use Integrated Reporting principles to produce a business-centric report that focuses on the areas that matter most to their business. We discuss three ways this can help to refocus your reporting: