Financial reporting lab seeks input for reporting on performance project

The Financial Reporting Council’s (FRC’s) financial reporting lab is seeking investors, analysts and listed and quoted companies of all sizes to participate in a project on the use and disclosure of performance metrics

Following on from the lab’s reports on business models and risk and viability, this project will explore how companies measure performance against their strategic objectives. It will consider both financial and non-financial metrics, and highlight how these measures can be presented in a way that is most useful to investor decision-making.

The scope of the project will develop in light of the contribution from those that participate, but it likely to examine how companies measure business performance, including financial (sometimes referred to as non-GAAP or alternative performance measures) and non-financial metrics, and how these metrics are presented in the front half of their annual report and accounts and other documents.

The work will also cover the extent to which the metrics used to measure performance against strategic objectives link to other sections of the annual report; how investors use performance metrics in their decision-making process; whether current practice in company reporting on performance meets investor needs; and the extent to which lessons can be learnt from international reporting practice.

The lab expects to work and report on this project in two stages. The first phase will look at current practice and consider the extent to which it meets investor needs. The second stage will involve company interviews and joint roundtables to address identified gaps in the reporting of business performance. The lab says it will provide more detail on the second stage after the publication of the first report in spring 2018.

The opportunities for participation will develop, but typically consist of a combination of individual meetings of an hour and round table meetings of two to three hours.

Investors, analysts and companies who want to participate in the effective reporting on performance project should indicate their interest in participating by 31 January 2018 via email at

Report by Pat Sweet

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