Most businesses, in particular international public companies, are reporting in line with the appropriate accounting framework. Additionally, the introduction of strategic reporting has improved the quality of the reports received by the Financial Reporting Council, as per their latest announcement.
However, the report highlights calls for companies to be more balanced in their reporting of their performance. Failing to recognise when things have not gone to plan, unnecessary use of underlying profit figures or inappropriate use of alternative performance measures (APMs) are found too often and erode trust and undermine the quality of corporate reporting.
The Financial Reporting Council continues to support the application of a single set of high quality global financial reporting standards for all listed businesses, while Investors have stated that their main goal is effective comparability when looking over company accounts.