Australia

Financial reports – less clutter, more value 

Financial reports are increasingly lengthy and complex – reducing your ability to effectively communicate how your business is performing.
Financial reports – less clutter, more value
Even sophisticated readers can find it difficult to understand accounting jargon and identify important disclosures, including whether key financial measures have even been reported.

Bernie Szentirmay

Bernie Szentirmay

Partner, Audit

+61 3 9288 5423

 

Integrated Reporting Insights

This series of short videos provides insights into the global debate and the evolution of corporate reporting in Australia.

Better Business Reporting publications

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

    Breaking the boilerplate
    Typically, this involves removing non-essential material and irrelevant disclosures, re-ordering and re-labelling accounting policy and detailed notes to better reflect key financial measures and using plain English while still fully complying with relevant accounting standards and regulatory requirements.

     

    Benefits of cutting the clutter

    • Better alignment of messages/results reported to stakeholders
    • Improved internal communication and understanding of the financial report
    • Reduced length of the annual report, saving management time and report production costs.


    The end product is a simplified, sharper and more relevant financial report that is easier to understand.

     

    First step to Integrated Reporting

    For those entities evaluating the pathway to Integrated Reporting, cutting the clutter is a first logical step in improving the clarity of reporting to the capital markets and stakeholders.

     

    What are the standard setters saying?

    Both the International Accounting Standards Board and Australian Accounting Standards Board have been active in promoting the importance of preparing less complex financial reports that focus on those disclosures that are material to the entity. ASIC have also publicly stated that it only focuses on those disclosures that are material to the financial report.

     

    How we can help

    KPMG can help you streamline your financial reports in a number of ways by providing:

    • thought leadership and examples of de-cluttered disclosures
    • feedback on draft de-cluttered financials
    • management and Audit Committees with insight on the best way to approach the de-cluttering process
    • assistance in drafting de-cluttered financial reports and participating in project workshops and discussions.

Bringing clarity to financial statements

Bringing clarity to financial statements
We outline considerations for producing a simple, sharp and relevant financial report and include a case study of a KPMG audit client.

Example Public Company Limited: Illustrative Disclosures 2013-2014

Example Public Company Limited: Illustrative Disclosures 2013-2014
For 31 December 2013 and 30 June 2014 reporting. A possible format for annual financial statements, based on a fictitious multinational corporation.

Making financial statements more relevant (2014/05)

This In the Headlines looks at the proposed clarifications by the IASB to IAS 1 Presentation of Financial Statements.