Director of Finance: Corporate reporting costs to increase
Black Sun’s annual corporate reporting summit, which was attended by almost half of the FTSE 100, found that corporates are keen to improve the quality of corporate reporting, but are unsure how the government plans to simplify and enhance corporate reporting will achieve their aim.
56% thought that the government’s plans will not improve communications and engagement with shareholders and 46% think the proposals will increase the cost of reporting. However, respondents were unanimous in the need for change, so that the corporate report becomes a key tool for all communications.
Sallie Pilot, Black Sun’s Director of Research, said “Good reporting is more than ever a sign of a well managed company and an opportunity for a business to tell its story and engage with its stakeholders. As with any changes in legislation there is understandably some trepidation among corporates as to what the Government’s proposals will mean in practice. However, in our view, the format and delivery channel for narrative reporting is secondary to the quality of the content and therefore it is the latter that companies should continue to focus on in order to build greater trust and confidence with investors.”
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