The future of corporate reporting is currently the subject of considerable debate. Financial reporting standards have been criticised for over-complexity and requiring more and more disclosures, sparking accusations that reports are too long and not fit for purpose.
The extent to which corporate reports genuinely highlight major risks for companies has also come in for scrutiny. And our research has revealed a lack of understanding of and interest in narrative reporting and what it is supposed to achieve.
ACCA is examining these issues and trying to set some directions for corporate reporting to increase its value. We are looking at areas such as integrated reporting and the use of technologies such as XBRL (eXtensible Business Reporting Language).