Where is the future of reporting going?
The Financial Reporting Council (FRC) announced the launch of a major project on corporate reporting for the coming months. The new research will engage stakeholders in how the reporting of the future may develop. During the second half of 2019, the FRC will publish a thought leadership paper consolidating the outcomes of the project, according to a news release.
FRC’s new report on performance metrics
A new document by the FRC’s Financial Reporting Lab aims to provide guidance and examples for companies to improve their reporting of performance metrics. The report, Performance Metrics — Principles and Practice, offers five principles that can help companies provide better information for investors. The report found that investors want metrics to be:
- Aligned to strategy.
- Transparent.
- In context.
- Reliable.
- Consistent.
The metrics are important to understanding how a business creates and preserves value, as they can reveal investment priorities and market position.
Annual United Nations reporting session
The 35th session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting met in Geneva in late October to discuss how governments and partners worldwide are contributing to sustainable development goals. Specifically, the session looked at how reporting projects from various countries are helping to improve the quality of sustainability and other nonfinancial reporting. The session also looked at how to compare metrics across jurisdictions and how to improve company performance in this area.
Guidance regarding financial instruments
The European Financial Reporting Advisory Group (EFRAG) has issued further guidance on the issues of financial instruments. An IASB discussion paper was released on the topic in June. Two explanatory bulletins are available for download, and the EFRAG site is accepting comments until 3 December.
— David Hackett is technical policy manager at the Association of International Certified Professional Accountants. To comment on this article or to suggest an idea for another article, contact Neil Amato, an FM magazine senior editor, at Neil.Amato@aicpa-cima.com.