Today’s annual reporting procedures must meet a range of investor and stakeholder interests, yet despite ARAs expanding in length, increased pressure from cyber-security threats and Brexit continue to stifle the reporting landscape. For global professional services firm, EY, cultivating a broad purpose, driving strategy and encapsulating value creation beyond financial merit, will help widen the reporting scope. In doing so however, clarity and broad purpose remains a necessity.

Last month, following the publication of its ‘Annual reporting in 2016/17’ executive summary, the firm held a webcast to review the findings of the study. With almost 200 people in attendance, including 117 representatives of FTSE 350 companies, live opinion polls suggested that as many as 44% of attendees considered that stakeholder engagement activities and outcomes could be reported on more clearly. Similarly, 49.5% of respondents aimed to be ‘middle of the pack’ with regards to their company’s philosophy on corporate reporting.

Yet with EY’s executive summary indicating mounting gaps in corporate reporting strategy, more needs to be done. The report indicated that 41% of reports show broad purpose, with only half of that figure defining clear links to strategic objectives. On the topic of industry risks, 31% of reports disclose information around potential disruption risks to the business, and conversely, 43% of reports include cyber-security as a principal risk.

As clarity forms the crux of adequate reporting for EY, future reporting trends must produce consistent messaging across preliminary results announcements, as well as analyst presentations. Yet full digitalisation remains a few steps away, with 69% of companies still producing reports in PDF fashion. Advisory points on governance reporting also specified a key focus on depth, highlighting greater value in decisions, actions and outcomes rather than roles and processes, as well as articulating the governance story through simple and less repetitive measures.

Upcoming notes also gave heed to EU Audit Reforms, as well as the EU’s Non-Financial Reporting Directive applying to large companies and qualifying partnerships over 500 employees. The summary also specified the most recent Gender Pay Gap disclosure, relevant from April 2017.

For a closer look at EY’s ‘Annual reporting in 2016/17’ executive summary, click here.