Businesses that make the transition towards improved communication with the capital markets now stand to reap significant benefits both now and in the future.
The journey to better business reporting is continuing. It begins by improving and consolidating what is already reported. This includes improvements to financial information, sustainability reports and management commentary.
The next step in the journey aims to overcome the limitations of today’s reporting model by incorporating forward-looking, strategic key performance indicators and using management commentary as an opportunity to bring this together.
The outcome for better business reporting is the development of a flagship business report that fully integrates critical business performance information, traditional financial reporting, management commentary and sustainability reporting to allow external analysts, investors and others to make informed judgements about the entity’s prospects.
The formation of the International Integrated Reporting Committee (IIRC) is one of the most significant developments in business reporting in recent years. The IIRC released the International Integrated Reporting <IR> Framework in December 2013.
The benefits of better business reporting include:
- more efficient capital allocation
- streamlined reporting processes
- reduced reporting costs
- enhanced organisational clarity in terms of business strategy and the business model.
KPMG’s Better Business Reporting Group is at the forefront of business reporting developments worldwide. We work closely with the Business Reporting Leaders Forum in Australia and the IIRC on driving change in the format and process of business reporting.