Corporate reporting complexity challenges grow as new priorities emerge
ACCA sets out guiding principles to help build trust, relevance and consistency.
With corporate reporting undergoing a significant transformation in a rapidly evolving business environment, ACCA (the Association of Chartered Certified Accountants) has published a new report, Principles of good corporate reporting. Designed to address the increasing complexities posed by new accounting and sustainability frameworks, rising stakeholder expectations, and technological advancements, it provides businesses, policymakers and other organisations with essential guidance.
“The corporate reporting landscape is becoming increasingly complex, with a multitude of frameworks, buzzwords, and regulations emerging to keep pace with dynamic business needs, technological advancements, and new priorities such as sustainability and the social impacts of business.” says Hsiao Mei Chow, author of the report and head of corporate reporting insights – sustainability at ACCA.
ACCA has set out eight principles in the report:
- Embed connectivity and coherence
Encourage better linking of financial and non-financial information to create a cohesive organisational narrative that clarifies strategy, risks, and value creation. - Apply a ‘building blocks’ approach, building on a global baseline
Support consistency by adopting a global baseline for reporting standards, while balancing the need for regional adaptations.
- Be principles-based and apply proportionality
Adopt an inclusive, principles-based approach to reporting that scales with an organisation’s size and resources.
- Maximise comparability, with interoperability as a catalyst
Enable meaningful comparisons across sectors through collaboration and harmonised approaches to reporting.
- Understand and meet stakeholders’ information needs
Focus on delivering decision-useful insights tailored to the needs of varied stakeholders.
- Take a holistic approach to corporate reporting
Present a balanced view of financial and sustainability-related information, showing the full scope of organisational impact.
- Enable and support good governance practices
Establish and disclose ethical, sound governance structures to build credibility.
- Ease access and avoid disclosure overload
Strive for clear, concise reporting that avoids overwhelming stakeholders.
Lloyd Powell, Head of Wales/Cymru, ACCA, said: “Getting corporate reporting right is important for larger Welsh businesses. It improves transparency and it helps with decision making, stakeholder engagement and decision making. At a time when companies are being asked to report on challenges such as sustainability action – as well as getting the finances right – we hope this report will help accountants produce meaningful information.”
ACCA’s Principles of Good Corporate Reporting serves as a comprehensive guide to navigating the complexities of modern reporting, empowering businesses and other organisations, as well as policymakers and regulators, to work together in fostering responsible, sustainable business practices. Read the full report here.