Debunking the myths in annual reporting
The annual report can often be viewed as a chore which takes away from the “real” business of running a company.
The annual report has long been one of the most important documents a company publishes during the year - a valuable source of information for investors and other stakeholders on performance and activities during the year. But over the past decade, annual reports have evolved and become more complex in line with ever-changing regulations and increasing expectations. And this has, in turn, put companies under pressure to invest more time and resources into producing their reports. So we often get asked:
What's the purpose of the report?
Why should we invest so much time and effort in producing it?
Does anyone actually care?
But companies’ perceptions of the annual report and how it is viewed and used by investors often do not reflect the reality of today’s reporting. This white paper looks at the five myths we come across most frequently when talking to companies, provides evidence to dispel them and makes suggestions to help those preparing reports to ensure their reporting is relevant and engaging, meeting the needs of investors and other stakeholders including employees, customers and suppliers.