Australia

Better business reporting 

Competition for capital in today’s environment is fierce. Failure to communicate effectively with the capital markets can result in poor capital allocation decisions and a weak understanding by the capital markets of your businesses strategies and performance prospects.
Better business reporting

There is growing acceptance that current financial and sustainability reporting practices are of limited use for those seeking to differentiate between competing investment opportunities or influence corporate reputation.

 

As a result, there is now worldwide momentum towards better business reporting

Michael Bray

Michael Bray

Leader, Better Business Reporting Group

+61 3 9288 5720


Six Capitals: providing value to shareholders

These AFR articles feature KPMG partners Michael Bray and Nick Ridehalgh who are acknowledged as driving forces in the Integrated Reporting movement.

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

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 endgame

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

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.

 

How we can help

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.

 

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Better business reporting publications

We examine the journey to improved communication with capital markets and development of better business reporting frameworks and practices.

Better business reporting – the journey continues

The journey to better business reporting continues
Michael Bray explores the changes required of companies to ensure they have processes in place to preserve the integrity of all corporate reporting.

CFOs driving the corporate reporting reform agenda

CFOs driving the corporate reporting reform agenda
KPMG Australia’s report outlines recent changes and trends to improve the information provided to the capital markets.

Corporate reporting reform: Better alignment with investor decision-making

Corporate reporting reform
This report looks at the changes and why investors need to be involved in developing a corporate reporting environment that best meets their needs.

Oversight of corporate reporting by company directors

Oversight of corporate reporting by company directors
KPMG Australia’s report discusses how recent changes in ASX Corporate Governance Principle 4 impact directors and investors.