MyCIMA

Cutting Clutter in Annual Reports

Posted: Wednesday 06 April 2011 by Nick Topazio
Replies : 1
Keywords: disclosures, transparency

Annual reports are often far from clear and concise presentations of relevant information; they are cluttered with disclosures that do not aid an understanding of the business making it harder for users to arrive at an informed view of the long-term prospects for the entity. 

The UK's Accounting Standards Board has published a report ‘Cutting clutter: Combating clutter in annual reports' that contains practical aids for reducing clutter, illustrative examples of clutter-free disclosures and suggestions to improve the annual report planning process.

The report is available from the ASB website and is open for comment until 30 September 2011.  If you would like to comment on the proposals please add to the discussion thread below.

AttachmentSize
CIMA Cutting Clutter letter September 2011.pdf75.26 KB

CIMA's response

Posted by Nick Topazio on Friday 30 September 2011 10:45

CIMA welcomes the discussion paper and believes that it provides significant proposals to improve the effectiveness of the corporate reporting system.  In our response we commented on

- the issue of materiality and the need for both preparers and auditors to apply professional judgement

- the investor community will also have to accept the omission of certain items on the basis of materiality rather than expect 'everything, every year'

- The FRC and ASB need to work with BIS and the IASB to encourage a positive disclosure reduction policy

- CIMA recommends that further areas of clutter removal are financial instruments, post-employment benefits and CSR reporting