It’s vital that corporate reporting continues to evolve – EY comments on new Purposeful Company report
27 February 2017
Hywel Ball, EY’s managing partner for assurance, UK & Ireland, comments on the Big Innovation Centre’s ‘The Purposeful Company: Policy report’ published on Monday 27 February:
“Today’s report from the Big Innovation Centre sets out the challenge and policy recommendations for Government, regulators and business, to help create purpose led organisations. Accounting and corporate reporting has an important part to play. Business needs to start measuring and reporting on the right things, to help bridge the trust gap with the public and renew businesses ‘social contract’ with society.
“Intangible assets such as culture, intellectual property and human capital, typically account for around 50% of a company’s value but are largely absent from corporate reporting. These key components of an organisation’s value are also increasingly important for investors, who are looking for greater insights beyond a company’s governance structure.
“It’s vital that corporate reporting continues to evolve to help companies to communicate, measure and report on the value they are creating for their stakeholders over the long term. It should be up to each individual company to define their purpose, but there needs to be the right frameworks in place to allow them to communicate it.”