Understanding investors: corporate perspectives shows that businesses are hesitant about adopting integrated reporting <IR> with the majority taking a ‘wait and see’ approach.
CFOs and other senior finance professionals surveyed told ACCA that while they had yet to adopt <IR> many of them planned to do so in the near future. Only 10% said they had no intention of adopting the reporting model, which includes non-financial information.
This report is the fourth and final part of a research series looking at the future of financial reporting, gauged the views of finance chiefs in UK and Ireland’s businesses. It revealed that some 40% were actively taking steps to introduce <IR> in the next few years.
However, findings from a previous report in the series, which captured the views of the investor community, found that 93% f investors expressed support for the concept of integrated reporting.
ACCA also delved into the relationships between company and auditor as part of the research. Finance chiefs highlighted a good relationship with their auditors, but indicated there was room for improvement around high costs and a lack of competition in the audit market. Sixty% said they wanted to see lower fees, while 47% favoured greater competition in the audit market.
Other findings in the report:
- Almost two-thirds of CFOs said that external stakeholders see the quick release of the annual accounts as a sign of good management, and over 80% have taken active steps to speed up the reporting process.
- Two-thirds of finance chiefs would welcome a move towards greater adoption of real-time reporting, but concerns remain over competition-sensitive information
- 38% favoured faster audits, while almost half favoured more frequent communication between auditors and their clients.