New Thinking
A roadmap for mid-market business owners
Adapting customer loyalty
Australia and the corporate governance experience
Australian and UK rail franchising experiences
Australian Regional Capacity Index
Australia's defence industry and the rise of Asia
Better business reporting – the journey continues
Big Data and why it matters
CHAFTA: Look to China for growth
Chinese Investment in Australia Demystified
Cloud – enabling business strategy
Corporate growth
Critical actions for a positive future
Cyber and digital security
Cyber security – Detect cyber threat
Cyber security – Protect your business
Cyber security – Respond to cyber threats
Cyber security – Secure organisational growth
Digital: A framework for the age of disruption
Digital: Reinventing the customer experience
Digital identity key for unlocking new business
Disrupting the board
Empowering Australians' impacted by their service
Financial reports de-cluttering in ASX200 companies
Financial System Inquiry – Innovation: Digital identity
Financial System Inquiry – Regulatory system
Financial System Inquiry – Superannuation and retirement incomes
Fixing Australia's naval shipbuilding industry
Future of investment management
Global shifts in defence and security
Harnessing the power of disruption
Here comes the M&A boom
Human services: rethinking regulation
Improving cities through urban renewal
Indirect Tax and International Tax – double the trouble?
Infrastructure trends
Leaving leadership development to chance is not worth the risk
Pricing: Defining the right strategy
Promising prospects in Australian corporate finance
Resource sector outlook
Risk transformation: Embracing conscious risk taking
Risk transformation: Engaging the first line of defence
Risk transformation: What makes a great CRO?
Road testing a public service reform agenda
Social media risks
Tax Reform: a call for fundamental change
Tax Reform: a new simplicity for fringe benefits
Tax Reform: a single tax collector
Tax Reform: stopping the fiscal drag
Tax Reform: property services tax
Tax reform – shaping the future
Tax transparency and morality
Technology and growth: working with the 'connected customer'
Technology's impact on investment industry
The constantly changing role of the CIO
The power of population
The private side of public investment
The Road to Paris
Transforming for consumer growth
Urban and regional growth: a smarter way
Utilities: technology is the future
Value of Audit
What is the future for government?
What a Japanese submarine option could mean for Australia
The journey to better business reporting continues


The journey to better business reporting continues

Australia's corporate reporting landscape is rapidly transforming.

The Federal Government is continuing their focus on cutting red tape as our Presidency of the G20 and B20 places renewed attention on growth, investment and financial stability.

We have also witnessed the release of the International Integrated Reporting (<IR>) Framework, which, when combined with recent changes to the ASX Corporate Governance Principles and ASIC Regulatory Guide 247, clearly indicates that corporate reporting reform is well and truly underway in Australia (and the world).

To keep up with this rate of change, companies need to redefine their corporate reporting strategy and review their corporate reporting portfolios.

This is essential at all levels from CFOs to boards to investors.

Michael Bray
"There is no doubt that the way organisations create value has changed and traditional financial reporting can no longer meet the information needs of all stakeholders."
Michael Bray
Leader, Better Business Reporting Group

A critical role

Such reforms will not only help 'cut reporting red tape' and realise our 'growth agenda' but reduce the volume and complexity of corporate reports, which will save money and provide clarity and more meaningful information for report users.

This is exactly what the Third Edition of the ASX Corporate Governance Council's Principles and Recommendations (ASX CGC Principles), released in March 2014, looks to help achieve – by requiring director oversight on all corporate reporting content (not just financial reporting) and the processes employed to independently verify and safeguard the integrity of the reporting.

Updated guidance, ASIC Regulatory Guide 247: Effective disclosure in an operating and financial review – March 2013, sets out clarifying guidance for the Directors' Report, bringing disclosures about companies’ business strategies, risk and prospects for future financial years front and centre.

In addition, the release of the International Integrated Reporting <IR> Framework, which, as noted in the KPMG Australia publication, CFOs driving the corporate reporting reform agenda, "...emphasises the need for companies to communicate their value creation story in a more holistic way, focusing on the strategic objectives, business model, value drivers, risks, performance and outlook, acknowledging the reality that investors (and other stakeholders) rely on more than just the financial statements when making capital allocation decisions. <IR> is concerned about the 'story behind the financials' and how well the organisation is positioned to be successful into the future."

Collectively, these changes to more holistic reporting will require companies to redefine both their corporate reporting portfolio and reporting strategy.

Beyond the red tape

But they will also provide a range of opportunities for Chief Financial Officers (CFOs), directors and investors.

For directors, changes to the ASX Corporate Governance Principle 4 aim to bring all corporate reporting within the realm of director oversight. This places increased pressure on directors to develop a corporate reporting portfolio that not only removes clutter, duplication and misalignment, but that better meets the needs of investors.

However, it also provides the unique opportunity to use these recent changes to streamline their company's corporate reporting portfolio through a reporting strategy designed to reduce the volume and complexity of their current corporate reporting and better enable investors to make decisions about the company's capital requirements.

To gain deeper insights into the changes and opportunities for directors, please download the KPMG Australia Oversight of corporate reporting by company directors publication.

CFOs, who are well placed to lead their organisation in developing a strategically aligned corporate reporting portfolio that better meets the needs of shareholders, can also take advantage of these reforms, ultimately, by helping to deliver a more relevant, streamlined portfolio of reports they can help both their organisation and their investors. For a complete overview, please download the KPMG Australia CFOs driving the corporate reporting reform agenda publication.

And speaking of investors, these changes signal the need for them to become more involved in developing a corporate reporting environment that not only best meets their needs but ensures clutter, duplication and misalignment across reports is a thing of the past. This will, however, involve engagement from both sides.

To discover more about the issues and opportunities available for investors, please download the KPMG Australia Corporate reporting reform: Better alignment with investor decision-making publication.

A long-term journey

Today, reports must talk about the entire business and provide truly relevant information – while reducing their volume and complexity and saving organisations time and money.

This is why business must be serious about enacting these reforms and focus on the opportunities, not only the challenges.

Only then can they (and their investors) go beyond even their own expectations.

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