Tomorrow’s Corporate Reporting: A critical system at risk focuses on the systems architecture and the behaviours and values of its stakeholders. Not on the content of the ‘ideal corporate report’. By corporate reporting we mean all the mechanisms by which companies communicate their performance and activity to their stakeholders, with a particular emphasis on the flow of information into the investment community.

The study looked at:

What aspects of the system are preventing or supporting the effective development of corporate reporting? And what changes are needed to make the system fit for purpose for the future?

During the research, 145 individuals provided evidence, were interviewed or engaged through roundtable discussions, representing 118 organisations from 22 countries across five continents.

The report explains the components of the current system and highlights that very few, if any, stakeholders see it as a system – rather they see particular pieces of the jigsaw. The implications of this, and other findings around the development of subsystems, particular behaviours and incentives pose important questions if the system is to innovate and evolve.

The report has intentionally, not reached a conclusion on the way ahead, but has asked some critical questions which should be considered by all those involved in the reporting system and those who have a role in ensuring it remains relevant and valued. These questions include the objective of corporate reporting, global convergence and whether the current structure of the system is itself a barrier on change.

The Chartered Institute of Management Accountants, PricewaterhouseCoopers and Tomorrow’s Company were the three partners of the project.