Reporting archive

You say to-may-to and I say to-mah-toe

  • Different styles of investor activism are more stereotypically associated with American or British activist investors.

Alternative performance measures: clarity and transparency are key

  • ESMA has released its final guidelines for the disclosure of alternative performance measures.

What does the future hold for interim management statements?

  • Companies must decide whether to produce an interim management statement on a voluntary basis.

Revenue – wait a little longer

  • The IASB has proposed deferring the effective date of its new revenue standard to 2018.

Getting on the front foot

  • Investor activism is on the rise and it’s essential that companies and boards are prepared.

HMRC mandates new taxonomies

  • Company tax returns must now be submitted using new taxonomies.

New UK GAAP, but which one?

  • Deciding which accounting regime to apply to UK subsidiaries is much more than an accounting exercise and requires careful thought now.

Telling a powerful performance story through integrated reporting

  • Management teams who clearly link important elements of their financial reports could improve the quality of their reporting and how they are perceived by investment professionals.

Our top five tips for your next annual report

  • Larger listed companies are producing good quality reports, but need to pay attention to some important issues in the next reporting cycle. PwC’s Peter Hogarth highlights the top five areas for attention.

Innovate your way to clearer financial reporting

  • Companies should experiment with financial statement layouts to see if they can tell the story of their performance more clearly.

Distributable profits: investors want to know more

  • Investors want to know more about companies’ ability to make distributions, but management teams need to consider their disclosures carefully.

Integrated reporting and the Strategic Report: a shared DNA

  • The difference between the Strategic Report and integrated reporting lies in the mindset of the reporter, but clear and relevant reporting is the shared goal.

Investor Forum takes a step forward

  • The Kay Review-inspired Investor Forum has appointed new board members and issued a discussion document.

Regulators shine spotlight on adjusted performance measures

  • Investment professionals find adjusted performance measures useful but companies should follow best practice when reporting them – regulators are watching.

Reporting in the right direction: FTSE 100 trends

  • 2013/14 was a year of change in company reporting, with multiple regulatory developments. PwC’s annual review of FTSE 100 reporting for the year aimed to identify how these factors influenced UK companies.

Revenue - the future is here, at last

  • The long-awaited converged revenue standard is here. In some cases the impact will be significant.
  • There’s a lot for companies to think about in preparing for adoption.

Financial instruments – the complete picture (almost)

  • IASB has published its financial instruments standard designed in response to the financial crisis impacting loan loss provisions and hedge accounting.

Adjusted Performance Measures

  • ESMA is considering new guidelines for APMs.
  • Companies reporting APMs should aim for balance and transparency.

FRC announces a programme to promote ‘clear and concise reporting’

  • The FRC remains focused on clear and concise reporting. This will require preparers and advisors to be brave, open-minded and innovative.

The FRC publishes guidance on the Strategic Report

  • The FRC has provided implementation guidance on the strategic report which covers materiality, communication principles and signposting/cross-referencing.

FRC consults on corporate reporting review procedures

  • The FRC has published a consultation to formalise the procedure for naming the companies which have included a 'Committee reference' in their financial statements.

Adoption of FRS 101

  • In order to adopt FRS 101 a company has to notify shareholders in writing. For top parent companies this process should be considered. A practical way is to include a note in the Notice of AGM.

Condivergence – a new word for our lexicon

  • The IASB and FASB reach very different preliminary conclusions on the leasing project.
  • A converged balance sheet and divergent income statement: hence ‘condivergence’.

IFRS in the EU

  • Announcement expected soon on new EFRAG Board, with composition expected to differ from what’s been previously mentioned.
  • The EC has published a call to participate in an informal expert group on the evaluation of the IAS Regulation.

New guidance – further opportunity for change?

  • The FRC is due to publish final BIS narrative reporting regulations guidance in April 2014
  • The aim is to encourage consideration of: materiality; where information is put within the annual report; and how key content elements link with each other

Regulator focus on structured pension arrangements

  • FRC has commented on structured arrangements involving company pension plans
  • It is concerned about the accounting for certain arrangements afforded equity treatment
  • This highlights broader concerns about using structured vehicles to achieve a desired accounting outcome

Presenting financial performance – is change on the horizon?

  • In January, the IFRS Interpretations Committee considered a request from ESMA to clarify some IAS 1 presentation requirements
  • ESMA is concerned about measures of performance, and in February published draft guidelines for listed companies
  • The FRC has identified a number of companies where the disclosure of exceptional items falls short of the clarity required

Integrated reporting: survey highlights reporting areas to focus on

  • Survey finds progress since 2008 but action needed in key areas to ‘integrate’ reporting
  • UK, Germany and South Africa have most effective reporting, influenced by regulation
  • In the FTSE 100, only a third show how risks impact strategy and other areas
  • 39% provide targets for their KPIs

IFRS hedge accounting: long-awaited standard looks to common sense

  • New standard will enable companies to improve reporting on economically valid hedging strategies
  • Companies can prepare for adoption, pending EU endorsement

Integrated reporting: IIRC releases final framework

  • Seen as a catalyst for ‘responsible capitalism’ that will support a financially stable economy
  • Robust comment process – questions raised on the meaning of value creation, materiality and responsibility for an integrated report
  • IIRC will now focus more broadly on companies starting to think about IR

IOSCO and IFRS collaboration 'encouraging' but limited

  • Pledge to deepen cooperation on IFRS
  • To succeed, IOSCO members will need to approach enforcement more consistently

FRC corporate reporting review – smaller listed companies underperform

  • FRC concerned about the reporting quality and expertise of smaller listed companies
  • It is also disappointed in the lack of initiative shown in this year’s corporate reporting

Insurance contracts – a second Exposure Draft (ED)

  • Second ED published in June – comprehensive standard elusive
  • Proposals seem to reduce income statement volatility but add significant complexity

Fastest companies to report in 2013

  • Basic industries, cyclical consumer goods and the financials sectors fastest to report to the market since 2008
  • New organisations e.g. from China, India and Russia have entered near the top rankings this year

Join the Conceptual Framework debate?

  • In July the IASB issued a comprehensive discussion paper
  • Far-reaching implications – e.g. a decision on measurement could affect what’s carried at cost and what at fair value
  • Deadline for comment 14 January 2014

Financial Reporting Council (FRC) Lab seeks more guinea pigs

  • Lab seeks companies to participate in new projects on audit committee reporting and accounting policies
  • Light time commitment; no cash cost involved