FTSE 350 Reporting Trends 2016

In this year’s review you’ll find a snapshot of the FTSE 350 reporting landscape along with ongoing challenges and emerging trends in corporate reporting.

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Being distinctive, strategic and relevant

Change in corporate reporting does not usually happen quickly. We did not, therefore, go into this year’s survey expecting to see annual reports that were significantly different from last year’s – and what we saw bore this out.  

This year, we have identified three ongoing fundamental reporting challenges that companies should consider in order to ensure that their reporting better meets the needs and expectations of investors and other stakeholders.

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#beyondboilerplate
#outsideyourcomfortzone

 

 

 

Our analysis demonstrates too many companies are reporting within their ‘comfort zone’. In some cases whole sections of reports have been rolled forward, but there is a more subtle issue; a gradual trend for reports to all look and feel very similar, almost ‘boilerplate’.

Reporting challenges

Individuality needed in corporate reporting

Companies have adopted good practices and improved the breadth and presentation of their reporting, but not always the depth and quality of the information reported.

We are seeing reports that are looking better and that have many of the key components of good practice, but it is often difficult to truly tell them apart. How distinctive is your reporting?

18% of companies ‘doing something different ‘ in their reporting
40% of companies link to strategy to KPIs, 35% to risks and 1% to market data

Strategic reports need to be truly strategic

We think that the introduction of the strategic report in 2013 has had some positive effects but our research leads us to question just how strategic most strategic reports really are if strategy is not at the centre of how many companies tell their story.

Reporting needs to evolve as expectations change 

Investors and CEOs tell us that business success will increasingly be defined by more than just financial profit, and long term success will, in part, be determined by understanding and meeting the needs of wider stakeholders. In response, companies will need to go beyond financial metrics and ensure they meet the needs of wider stakeholders to remain a sound investment case.

63% of investors and 76% of CEOs said business success will be defined by more than financial profit and long term success

“Corporate reporting has made great strides in the last decade but it faces some fundamental challenges if it is to meet the needs of the 21st century.”

Mark O’Sullivan PwC, Head of Corporate Reporting

Download

Analysis of FTSE 350 reporting trends 2016

Being distinctive, strategic and relevant: The ongoing challenges in corporate reporting

Contact us

Mark O'Sullivan
Head of Corporate Reporting
Tel: +44 (0)20 7804 3459
Email

Gurpreet Kaur
Manager
Tel: +44 (0) 20 7804 6625
Email

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