FRC clear and concise report suggests areas for improvement in strategic reports
The FRC has published a report on developments in narrative reporting.
The report includes practical tools to help companies achieve clear and concise reporting. For example, how to “get buy-in across internal teams to remove information from the annual report”. The report also includes a study reviewing the influence of the FRC’s Guidance on the Strategic Report since its publication in 2014. The study found that annual reports have become more cohesive with better linkage between related information and more focus on clear and concise reporting.
However, some barriers to clear and concise reporting remain. The FRC highlights areas where there is scope for improvement. These include:
the business model, where the FRC calls for more explanation of what makes a company different from its rivals;
more forward looking reporting, especially in relation to strategy, and
greater application of materiality in relation to disclosures of principal risks and key performance indicators.