Reporting tips

Showcasing good practice examples in reporting.

There are many ways to improve your communication with stakeholders, whether you go for a completely new approach or take small steps in a more evolutionary process. 
We’ve compiled a series of practical reporting tips based on current hot topic areas in reporting that showcase key findings from our research, providing evidence of the gaps in reporting, along with real examples from companies to inspire you and illustrate what’s possible. 

Reporting tips

Strategy

The foundation of all strong reports is a clear articulation of strategy that is transparent around what the company hopes to achieve, how it plans to achieve it – the objectives, and how it is performing against these objectives. 

Read more in our reporting tip on strategy which includes an example of good practice reporting.

Source: PwC 2017 review of FTSE 350 narrative reporting

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Business models

In an increasingly complex world where companies are virtual, global, highly collaborative and complex, the need for investors to better understand a company’s business model has never been greater.

Read more in our reporting tip on business models which includes an example of good practice reporting. 

Source: PwC 2017 review of FTSE 350 narrative reporting

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Key Performance Indicators

The extent of alignment between strategy, reported KPIs and remuneration policy is a good test of the quality of management’s strategic thinking. When that alignment is lacking, it raises questions: how can management know the business is on track to deliver its strategic aims? How is management incentivised to deliver strategic success? Does the strategy presented reflect internal reality or is it merely cosmetic?

Read more in our reporting tip on Key Performance Indicators (KPIs) which includes an example of good practice reporting. 

Source: PwC 2017 review of FTSE 350 narrative reporting

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Market factors

At a time when so much uncertainty exists, it is more important than ever for management to put across their perspective on the markets they operate in and how they are responding to the changes and trends.

Read more in our reporting tip on market factors which includes an example of good practice reporting.

Source: PwC 2017 review of FTSE 350 narrative reporting

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New accounting standards

Companies reporting under IFRS are required to disclose information about the impact of applying new accounting standards. This note to the financial statements is often criticised as ‘boilerplate’ disclosure. But this year it might be one of the most closely scrutinised notes in the entire annual report.

Read more in our reporting tip on new accounting standards which includes an example of good practice reporting. 

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Tax transparency

Corporates are facing increasing pressure to explain their tax affairs. A requirement for large corporates to publish a public tax strategy was introduced in 2016, the Financial Reporting Council carried out a thematic review of tax and there are increasing demands around Country-by-Country reporting.

Read more in our reporting tip on tax transparency which includes an example of good practice reporting.

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Climate change

The TCFD was set up by the G20 to address concerns around insufficient disclosure of climate-related risks and opportunities for businesses. Most companies disclose backward-looking sustainability metrics such as recycling rates or greenhouse gas emissions (GHGs). The TCFD asks companies to take a forward-looking approach to the financial impacts of climate-related risks and opportunities to their business models.

Read more in our reporting tip on climate change which includes an example of good practice reporting. 

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Tackling audit committee significant issues

The requirement for the audit committee to describe in its section of the annual report ‘the significant issues that the committee considered in relation to the financial statements, and how these issues were addressed’ was added to the UK Corporate Governance Code (the ‘Code’) in 2012. In this document we've provided some illustrative examples that we hope will encourage companies to go beyond existing practice, with the aim of driving the kind of value that these disclosures were originally intended to produce. 

Read more in our reporting tip on tackling audit committee significant issues which includes an example of good practice reporting. 

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Contact us

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