Investors are still looking for companies to make business model, risk and viability disclosures more useful, according to a new report from the Financial Reporting Council's Financial Reporting Lab.
The report, Business model reporting; Risk and viability reporting – Where are we now? considers how reporting practice has changed since the Lab published its original reports in 2016 and 2017. It includes practical examples from companies that have implemented the recommendations in those reports.
Whilst there have been some good developments, investors continue to emphasise the need for reporting to be more consistent and clearly linked throughout a company’s annual report. Investors value disclosures that tie business model, strategy, risk and viability together to enable them to assess progress against strategy and management of risks through the use of KPIs.
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