Companies are becoming more communicative in their annual reports, according to a study from accountancy firm Deloitte.

The report, entitled ‘A telling performance’, examines the narrative sections, or information outside the audited financial statements, contained within the annual reports of 130 listed companies, including 30 investment trusts, which currently make up 40% of listed companies.

It revealed that 83% of listed companies commented on their capital structure and financing in the narrative section of this year’s annual report, compared with 47% last year. The number discussing liquidity issues more than doubled, from 22% to 47%.

The length of an annual report has increased by 3% compared with last year, and 41% compared to 2005. Nearly all companies (96%) of companies clearly described their principal risks and uncertainties, up from 89% last year. Companies disclosed eight risks in average, with one FTSE 350 company identifying 30. The state of the economy was the most commonly noted risk.

Isobel Sharp, an audit partner at Deloitte, claimed regulation was behind the changes, with companies increasingly required to provide information over and above the numbers.

Companies have performed better in 2009 than in 2008 in meeting the disclosure demands which are diverse, disjointed, different and dysfunctional,” she said. “Businesses would be helped if there was a single authoritative document which brought together the requirements in a complete, logical and orderly manner.”