News and views

Our response to BIS on the future of narrative reporting

The Annual Report is an important tool for communicating a company’s historic performance. However its usefulness to investors over recent years has been compromised by inclusion of new mandatory information aimed at transparency, but in fact leading to new levels of complexity. We support ideas that can help the Annual Report once again become a communication tool, and in particular give management the freedom to present information relevant to the Company’s performance. We think that the proposals to introduce a Strategic Report will particularly help, allowing Directors to tell the company’s story in way that is unique to them, and of relevance to their stakeholders.

We also support the new Annual Directors Statement which will enable the presentation of other useful information, not directly relevant to understanding the current period performance to be shown in a more appropriate format.

Narrative reporting is a key issue for IR practitioners. Please view our consultation response and accompanying letter.