Investment Association calls on companies to stop quarterly reporting
The Investment Association has published a public position statement calling for companies to cease reporting quarterly and to refocus reporting on strategic issues.
The requirement to report quarterly was removed from the DTRs in December 2014 following an earlier amendment to the Transparency Directive. Since then, 30 FTSE 100 companies and 139 FTSE 250 companies have ceased to publish quarterly reports.
The Investment Association regards quarterly reporting as a distraction that shifts company resources away from long-term strategic considerations. It calls on companies to cease reporting quarterly and focus on improved reporting on long-term strategy and capital management. If companies do, however, wish to continue to report quarterly, they should publicly explain their position and disclose how it is relevant to the achievement of long-term strategy.
IVIS will monitor which companies continue to report quarterly and the explanations they provide.
The Investment Association's statement can be found here.