Dated: 25 November 2011
The Institute of Directors has today submitted its response to the Government’s consultation on the future of narrative reporting. Commenting on the IoD’s response, Roger Barker, Head of Corporate Governance at the IoD, said:
“A new, simpler framework for company reporting is needed. Annual reports are currently far too complex and are often ignored by investors and other stakeholders. For this reason, we are broadly supportive of Government proposals to improve the structure of narrative reporting.
Reforms to narrative reporting should focus on improving the dialogue between quoted companies and their shareholders. Care should be taken to ensure that smaller companies are not affected by the proposed changes. Given the challenging economic environment, it would not be appropriate for a new reporting framework to be associated with significantly higher auditing costs.”
The IoD’s submission to the consultation can be found here .
