Commenting on the discussion paper published by the Financial Reporting Council (FRC) yesterday, Hywel Ball, EY’s UK Chair, says: “The FRC’s proposals are a valuable and welcome contribution to the debate about the future of corporate reporting. Reports are a company’s opportunity to communicate with its stakeholders about its wider impact and to show that it is operating a sustainable business. The FRC’s proposals would see companies place a greater emphasis on how they intend to drive value both in the near and longer term, and how they manage key risks.
“As the demands on corporate reporting have increased, it’s important to review the structure and thinking which underpin reports. Technology presents an opportunity to do things differently to improve accessibility, while a more user-focused approach can improve the usefulness of reports. As the current circumstances demonstrate, flexibility in reporting matters too.
“Our own research has found that UK corporates have good levels of compliance with reporting codes, although more could be done by companies to demonstrate how they have put their stated purpose into action.
“The FRC’s report is part of a wider package of audit and corporate governance reforms. These reforms present a once-in-a-generation opportunity for the UK to enhance the audit, corporate reporting, and corporate governance ecosystem. As part of the audit profession’s evolution, a holistic package of reforms, featuring improved director accountability and expansion of the scope of audit, is required to deliver effective and sustainable change.”
Notes to editors:
Hywel Ball was part of the Future of Corporate Reporting Advisory Group. A full list of members can be found here.