Seven questions away: a better annual report
The Institute of Chartered Accountants in England and Wales have produced a report that sets out seven questions that those who use, prepare and audit annual reports should ask to produce better quality information.
The questions target key areas of reporting which often cause difficulty such as the amount of information in an annual report, whether the report addresses the areas that a use would consider important and the content of audit committee reports. In particular the report identifies tax reporting and high pay for directors as areas that need to be understandable and explained clearly.
The ICAEW states that the seven questions will form part of a more detailed report to be published in “early 2016”. This report will offer recommendations aimed at improving the quality of information included in the “front half of annual reports”.