At a time when shareholders want clearer information and there is significant competition for capital, a new era of corporate reporting is emerging to assist organisations to tell their story. For the second time, KPMG has undertaken an analysis of financial reporting trends in the ASX 200.
A new era in corporate reporting: Review of recent corporate reporting and de-cluttering trends in the ASX 200 shows how Australian listed organisations are embracing ‘cutting the clutter’ in their financial reporting, future challenges, and how this is a starting point for improving the broader approach to corporate reporting.
Our analysis confirms that across the ASX 200, significantly more organisations have now performed some form of de-cluttering in their financial report in order to provide more concise, clear and informative financial information to users. Organisations intending on sticking with the status quo rather than de-cluttering now run the risk of being compared unfavourably to comparator organisations that have.
We encourage organisations to go beyond cutting the clutter within their Annual Financial Report and consider de-cluttering the remainder of their Annual Report, with the remuneration report being an obvious next target for improvement.
De-cluttering and improving the overall Corporate Reporting Portfolio and clarifying the Corporate Reporting Strategy are potential further steps in the journey to produce more meaningful corporate reporting for users, and better information to support business and investment decision-making.
Our report shows that organisations: