see also...
Accounting Standards Board - a review of narrative reporting by UK listed companies in 2006
This purpose of this review (carried out by ASB staff) of narrative financial reporting is to highlight strengths and weaknesses of current reporting in the interests of the widespread adoption of best practice.
The review concluded that whilst companies were good at providing descriptions of their business and markets, together with their strategies and objectives and giving descriptions of the current development and performance of the business, there is room for improvement in the following areas:
- Disclosure of forward looking information
- Describing resources available to the organisation
- Disclosing principal risks and uncertainties and how to mitigate them
- Identification of KPIs, both financial and non-financial