FRC’s Lab to report on implementation impact
The Financial Reporting Council’s (FRC’s) financial reporting lab is carrying out an implementation study on how practice has changed as a result of its work on corporate reporting, and will reveal its findings at its conference in London in June
18 Apr 2018
In its Q1 newsletter, the Lab said the 2018 conference will include a presentation of how past Lab reports have influenced reporting practices, as well as looking at the challenges in company reporting over the next five years.
Its project on reporting of performance metrics, which was announced in December, has around 35 investors signed up and in its first phase is looking at current practice and considering the extent to which it meets investor needs.
The topics under consideration include disclosure of non-GAAP financial measures, the use of non-financial metrics, reporting across different formats, the role of assurance and links to remuneration.
The newsletter says so far investors have highlighted the importance of company-specific metrics which are linked to strategy and remuneration. The Lab expects to release a phase one report in June which will include a set of principles for performance metric reporting. In the second phase of the project it will then look to work on best practice examples of how some of the principles can be applied.
Following two roundtables with the accounting bodies ACCA and ICAEW, the Lab is aiming to release a report on blockchain and corporate reporting in May, and is beginning work on how artificial intelligence will play into corporate reporting.
The newsletter also highlights work by Generali to adopt best practice in clear and concise reporting, which the Lab says is more comprehensive than just the annual report and is a philosophy that extends across companies’ communication with their stakeholders.
In Generali’s case it has been working since 201 to focus their quarterly reporting on only the most essential material, with the result than more than 200 pages of text has been reduce to just four pages in their most recent quarter.
The Lab’s 2018 conference will be held on 21 June at venues near London wall from 14:00 – 17:30.
Report by Pat Sweet