Corporate Reporting is becoming increasingly important to stakeholders. So what is Corporate Reporting? Here is a definition from Price Waterhouse Coopers —
The exact definition of corporate reporting differs depending on who you speak to. However, throughout this web site we use the term ‘corporate reporting’ to relate to the presentation and disclosure aspects – as distinct from accounting/measurement – of the following areas of reporting:
- Financial reporting
- Corporate governance
- Executive remuneration
- Corporate responsibility
- Narrative reporting
Most of these topics are well known. But perhaps, to most, Narrative Reporting is less well known. Yet it is becoming increasingly important. There are a number of definitions for Narrative Reporting, however, simply put, it is going beyond the static financial numbers and telling the story behind the numbers. It involves proving the qualitative context and “connecting the dots” so that stakeholders are better able to understand the broader perspective of corporate performance.
There are many benefits associated with good Narrative Reporting —
Now for an example of good practices. There is Premier Farnell plc, a global, business-to-business, small order, high service distributor of electronic components and industrial products. They not only present their Annual Report, their senior management provide videos within it, in bite-size chunks, to explain the company and their strategy —
Note also the comprehensive navigation on the left and the summary showing “how we’ve performed”. The company also provides an Interactive Guide to the company. This allows prospective investors to learn more about the company. Well done!
Since Narrative Reporting is becoming increasingly important, especially in the current financial milieu, my next post will contain more examples.
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