Is your business model understandable?

Within the Financial Reporting Lab’s (Lab) ‘Business Model Reporting’ research, it was found that the business model is a vital part of an investor’s initial investment appraisal process and fundamental to their analysis and understanding of a company and its prospects.

While some disclosure has progressed, the Lab’s 2018 implementation study shows there is still room for improvement.

With different expectations of content within business model reporting, different stakeholder perspectives of value generation and with each company having a unique response to address the demands of its marketplace, business model reporting can be a challenging task to achieve.

Is it possible to use a systematic approach to consider and develop the disclosure of a business model? We think so.

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