But is there a broad consensus over the defining characteristics of the best annual reports? We asked five reporting specialists for their views:

Richard Carpenter, managing partner, Merchant Group

“There are three key areas for us – content, look and feel, usability.

The indicators that define good narrative reporting content include strategic information, marketplace discussions, risk management information and KPIs.

In theory – and it is theory because it doesn‘t pan out like this for most companies – the strategic objectives should be linked to relevant KPIs and then linked to relevant risks (and how those risks are managed should then be identified).

We also help define how the financial information should be presented via additional charts/graphics. In terms of look and feel, we‘re looking for, or advising upon, a look and feel that is sympathetic to the company‘s brand but is also sympathetic to its audience. If the report is aimed at solely institutional investors then it needs to reflect that in how it looks; if there’s a bigger retail element, that might come to the fore. Similarly, what are companies using the report for? If it has a marketing use it might need to look different to solely conveying thoughts to investors.

There’s no point in having fantastic content if no-one can find what they’re looking for; similarly, there’s little point in having the most beautifully designed report if it’s a nightmare to use. Navigational aids, such as tabs, headers and footers help the reader, and pulling out key content into pull-quotes drives the reader to what you want them to read. A bit like magazines really.

All of this applies equally online as it does in print.”

Adrian Parker, client partner, SAS

“Less is more. Corporate reports should be based around short, sharp content, not reams of narrative that leave you to you draw your own conclusions.

It’s a new online world. Paper is dying out. Organisations need to ask what more the internet can do to help tell their story.

And simplicity is also important. When it comes to language, there should be a balance between compliance data and coherent communication. Avoid all the usual corporate clichés and remember that this will be read by human beings who can see through waffle, spin and bluff.

When it comes to design, we have seen the death of the highly-glossy annual report in favour of functional design. The rule should be ‘if it doesn’t have a purpose, chuck it out’.

Learn to think beyond the audited space, putting non-audited content that helps tell the wider story out there in a separate vehicle that just happens to appear at the same time as the audited channels.

Reports should also balance short-term objectives with long-term values. I don’t think there has ever been a time when this has been more important.

CSR shouldn’t be forgotten. Reports should draw CSR to the centre of financial reporting not treat it as an add-on. It is a bottom line issue.

Finally, remember that people like to be entertained, not bored to death.”

Clive Bidwell, head of corporate reporting, Radley Yeldar

“Focus on communicating one joined-up story linking business model, markets, strategy, KPIs, risk and material CR issues – the essential content elements required by investors, the Accounting Standard’s Board’s RS1 and the Enhanced Business Review. Capita’s annual report is a good example of this. It’s structured around the group’s five-point strategy. Great Portland Estates is another consistently strong reporter.

An area of increasing focus is risk and governance reporting. The introduction of the Governance Code and Stewardship Code will have a big impact.

Accessibility is another key success factor, a point supported by the FRC’s 2009 publications ‘Louder than words’ and ‘Rising to the challenge’. PartyGaming’s reporting has been successful in communicating their story in an accessible and compelling manner.

Online reporting provides more opportunity to engage readers through video and other functionality. The Sage Group report, published in January, includes interviews with directors and video case studies.

Good online reporting isn’t confined to the FTSE100: Premier Farnell (Mid 250) and Next Fifteen’s (AIM) reports provide a rich interactive experience.”

Neville Wells, director of corporate reporting, Likemind

“Here are my ten KPIs for annual reporting:

• Does it deliver a clear and thoughtful understanding of strategy and performance with a focus on the future?

• Are the dots joined up with explicit links between all the elements giving a logical narrative? Have a gutsy communicator with editorial authority over the narrative, rather than a series of disjointed fiefdoms.

• Does it provide internal and external context? Good overviews of the company and its markets, all wrapped in a clear expression of the corporate brand are key.

• Where does it lie on the continuum of verbose to abrupt? Don’t overload the system – focus on what matters and don’t be bullied into including information that is not material.

• Is the report tailored to the company and its sector? Users like to be able to make comparisons, so don’t make it hard for them. • Does it look forwards as well as back? You don’t pilot a ship by staring at the wake.

• Is the presentation clear, recognising the needs of identified principal audiences? It should be possible to skim as well as immerse. Reams of continuous prose and tables of numbers would suggest, ‘No’.

• Is it up-to-date? Content should be demonstrably current, not tired boilerplate – check Principal Risks and Governance. • Is it innovative but not gimmicky? It’s a business document, not a colour supplement.

• Is it compliant? This is the start of the journey, not the destination.”

Sallie Pilot, corporate communications director, Black Sun

“In a nutshell, what we look for is clear, concise and joined up communications. We advise companies to think along the following principles:

Integrate all your communications across all media (both on and offline). Ensure consistency about how you talk about the business.

Set out clear messages. Be open, honest and transparent; reflect a director’s view of the business; focus on the matters that are relevant to your ‘stakeholders’; have a forward-looking orientation; ensure you are developing a cohesive story with a beginning, middle and end that answers the question ‘why should I invest in this company’.

Stay focused. Ensure your report is comprehensible and understandable. Be balanced and neutral: it’s not just about the good stories. And be comparable: report consistency year on year.

Build up your story over time: see it as one part of a dialogue with stakeholders. Reflect your business, culture and values. Go beyond boiler plate to actually explain how your business operates, the processes and systems. And reinforce what makes your company different - give it a personality.”