FRC offers guidance on Strategic Report

Since the introduction of the mandatory Strategic Report in 2013, some companies have struggled to implement the necessary changes in their report, with many simply crowbarring the same information into the new structure.

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In response to the issue, the Financial Reporting Council (FRC) has delivered the first in a series of documents designed to promote the principles of clear and concise reporting. ‘Guidance on the Strategic Report’ directly addresses concerns that companies are failing to give investors the insights into strategy that they need.

“Investors still express concern that the key messages about the business are buried in too much verbiage of little value or are obscured by boilerplate. The programme we launch today is designed to tackle this persistent problem and promote clear and concise reporting,” said Stephen Haddrill, FRC Chief Executive.

The guidance aims to enable companies to better tell their story, by expanding on various components of the Annual Report and offering practical suggestions on where information should be placed.

The guidance can be found here.

Further releases in the series will include a review of progress towards clear and concise reporting in 2014, Financial Reporting Lab case studies and reporting by the Corporate Reporting Review Team on reports where it commonly observes “clutter”.