According to recent
KPMG
guidance: “There is growing recognition that the range of issues and
opportunities affecting long term business value is much broader than can be
reflected in a set of current year financial measures. Annual Reports need to
reflect this if they are to support investors’ capital allocation decisions effectively.”
The guidance also notes that: “Integrated Reporting provides
a basis to address this by refocusing reporting around an organisation’s
business model and operational priorities. The aim is to reflect the critical
opportunities and challenges that affect the business - the same issues that
management are dealing with on a daily basis within the organisation. Although
designed to support the preparation of dedicated Integrated Reports, this
approach can be applied by any company preparing an Annual Report - and indeed
to other elements of corporate reporting.”
It concludes that: “For executives frustrated by apparent
investor short-termism, this is an opportunity to provide a more complete
picture of value, how it’s shaped by current and future events, and explain
what management is doing to create and preserve it.” To learn more, read the KPMG’s guidance,
Does
your Annual Report tell your whole value creation story?
