1 minute read 26 Sep 2019
ey-annual-reporting-18-19-corp-gov

How the annual report can help engage stakeholders and restore trust

Authors

Maria Kępa

EY EMEIA Assurance Director

Director in EY's UK audit practice and corporate governance team. Experience working with clients in media, mining and other sectors in Europe, America and the Middle East. Mother of two.

Ken Williamson

EY UK&I Professional Practice Partner and Partner in Corporate Governance

Passionate about governance and audit which are critical to trust in business and a renewed focus on social purpose. Wine and exercise enthusiast - a perfect combination.

Mala Shah-Coulon

EY UK Corporate Governance, Associate Partner

Passionate about governance – a vital ingredient to running a successful enterprise and not a compliance imperative. Mum of twins and trustee at Bliss.

1 minute read 26 Sep 2019

With new reporting requirements starting in December 2019, we can help companies navigate recent changes and prepare for their next year end.

Annual reporting in 2018/19: Engaging stakeholders, restoring trust is the sixth edition of EY’s annual review of FTSE 350 annual reports and accounts (ARAs).

Although the first reporting against new requirements, brought in by the 2018 Code and MRR, will start in earnest in December 2019; it has been encouraging to see that some companies have already made a head start in certain areas.

Our report identifies some of these early reporting practices and provides our views on what good reporting and corporate governance practice looks like. We also suggest how companies can develop their reporting to prepare for their next year end and realise the aims of the recent changes.

The report focuses on key new areas of the new legislation, including:

  • Articulating purpose and culture
  • Stakeholder engagement and s172 reporting
  • Board evaluations and talent planning
  • Emerging risks
  • Broadened responsibilities of the remuneration committee.

We hope our report will provide practical insights whether you are a director, ARA preparer or investor.

For more insight into corporate governance developments and our latest publications, events and webcasts, sign up to our Spotlight e-bulletin.

Read the full report.

Listen to our on-demand webcast.

In light of the COVID-19 crisis, we have supplemented our usual acid test – a tool we have developed and used for over six years to qualitatively assess narrative reporting - to cover matters that are pertinent at this time. We believe boards and management should address these in the narrative within their annual reports to explain the impact of the crisis on the company and its response. Transparent, balanced and meaningful reporting at this time is critical to maintain and enhance long term trust in business. Download our COVID-19 acid test here.

We trailed this COVID-19 acid test in Maria Kepa’s and Mala Shah-Coulon’s recent LinkedIn blogs. Maria's blog explores what companies should consider communicating about the longer-term impact of this crisis on value preservation and creation. Mala's blog discusses the importance of balanced and meaningful reporting which investors and other stakeholders can use to engage with companies.

Summary

Our sixth annual review of FTSE 350 annual reports and accounts looks at good reporting and corporate governance practice, and how companies can navigate recent reporting changes and prepare for their next year end.

About this article

Authors

Maria Kępa

EY EMEIA Assurance Director

Director in EY's UK audit practice and corporate governance team. Experience working with clients in media, mining and other sectors in Europe, America and the Middle East. Mother of two.

Ken Williamson

EY UK&I Professional Practice Partner and Partner in Corporate Governance

Passionate about governance and audit which are critical to trust in business and a renewed focus on social purpose. Wine and exercise enthusiast - a perfect combination.

Mala Shah-Coulon

EY UK Corporate Governance, Associate Partner

Passionate about governance – a vital ingredient to running a successful enterprise and not a compliance imperative. Mum of twins and trustee at Bliss.