A UK government consultation focused on updating the corporate reporting framework presents an opportunity to make reporting requirements “much more concise, connected, and decision useful”, CIMA said Tuesday.
“It’s potentially the most significant shake-up to the UK corporate reporting landscape in a generation,” Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at the Association of International Certified Professional Accountants, said in a news release. “We’ve heard from many business leaders and our members that today’s regulatory and compliance burden is continually expanding and outweighing the benefits received by stakeholders. Corporate reporting should be transparent, decision-useful, and efficient, evidencing value creation and not an ever-increasing regime of costly box-ticking for organisations.”
The government said that the consultation was part of a wider programme to reduce companies’ administrative burdens. “It invites views on how to deliver a simpler, more coherent, and future‑focused reporting framework that is fit for businesses of all sizes,” the government said.
The CIMA release noted that, while UK corporate reports have grown in length and complexity, more disclosures do not always lead to greater insights and that excessive volume can obscure insights that matter for business leadership, strategic decision-making, and long-term value creation.
“Most recently the introduction of sustainability-related financial disclosures UK [Sustainability Reporting Standards] S1 and S2 [has] significantly enhanced the regulatory landscape,” the release said. “Similarly, the digital and AI-enabled environment [has] transformed how reporting works in practice. Stakeholders increasingly expect information to be accessible and timely. The review’s success will therefore depend on organisations treating reporting as a catalyst for stronger governance, better board insight, and effective long-term decision-making.”
The comment period for the consultation closes on 30 November.
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.
