Implementation study: Business model reporting; Risk and viability reporting – Where are we now?
18 October 2018
Investors are still looking for companies to make business model, risk and viability disclosures more useful, according to a new report from the Financial Reporting Council's Financial Reporting Lab (the Lab).
The report, Business model reporting; Risk and viability reporting – Where are we now? (PDF), considers how reporting practice has changed since the Lab published its original reports in 2016 and 2017. It includes practical examples from companies that have implemented the recommendations in those reports.
Whilst there have been some good developments, investors continue to emphasise the need for reporting to be more consistent and clearly linked throughout a company’s annual report. Investors value disclosures that tie business model, strategy, risk and viability together to enable them to assess progress against strategy and management of risks through the use of KPIs.
Phil Fitz-Gerald, Director of the Financial Reporting Lab, said,
“The Lab’s report highlights the importance of business model and risk and viability disclosures. It provides practical examples from companies that have adopted the recommendations of previous Lab reports and reiterates investor views on how these improvements help to meet their needs.”
The Lab’s report ‘Business model reporting; Risk and viability reporting’ – Where are we now?’ can be found here (PDF).
See the original Risk and viability report here (PDF), and the Business model report here (PDF).