FOR IMMEDIATE RELEASE
Brussels, 12 October 2015
Corporate reporting is an essential element of companies’ accountability. It is how they communicate on their position and performance to stakeholders. The new FEE Cogito Paper: The Future of Corporate Reporting – creating the dynamics for change puts forward ideas for corporate reporting to evolve in a way that will keep pace with the developing economic reality and address the needs of a wider stakeholder audience.
This process of communication and accountability has consequences for a broad range of stakeholders. The ideas presented in this paper should thus be of interest to politicians and policy makers, (accounting) standard setters, regulators, enforcers, companies and their stakeholders, including investors, and of course the accountancy profession that FEE represents. We encourage all stakeholders to discuss the paper and provide FEE with comments by 30 June 2016.
“The momentum to change corporate reporting is obvious from the increasing public debate, the growing demand for non-financial reporting, and companies experimenting to improve their reports. Technology plays an important role in this evolution, both as a driver and an enabler for change,” says Petr Kriz, FEE President. FEE finds that more flexibility can make corporate information more relevant, timely and less of an overload. FEE also thinks that the different standard setters working on non-financial information reporting should cooperate to resolve the patchwork of guidance that this is subject to.
In this paper FEE presents a new approach to corporate reporting, whereby a company produces an executive summary of its corporate affairs, supported by more detailed information: the CORE & MORE. The content would depend on the company’s assessment of its stakeholders’ information needs. The paper also presents a way to keep the CORE & MORE reports timely and relevant by updating elements without affecting the other parts.
“Support from policy makers, standard setters, and auditors is a prerequisite to change corporate reporting,” Olivier Boutellis-Taft, FEE CEO, added. “They need to allow room to innovate and experiment in corporate reporting.”
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FEE (Federation of European Accountants) is an international non-profit organisation based in Brussels that represents 47 institutes of professional accountants and auditors from 36 European countries, including all of the 28 EU member states. FEE has a combined membership of more than 800,000 professional accountants, working in different capacities in public practice, small and large accountancy firms, businesses of all sizes, government and education – all of whom contribute to a more efficient, transparent and sustainable European economy.
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Tel: + 32 2 893 33 60