Insights

Annual report insights 2016

A clear vision

Knowing how your annual report stacks up and understanding what improvements you can make to better meet the needs of your company, industry regulators, investors and the wider public needs is a common challenge.

Each year we analyse the annual reports of 100 UK listed companies across multiple sectors. The results, together with our insight, help to identify key regulatory challenges and opportunities to enhance your report.

Scroll to the bottom of the page or click on How do you compare? to use our new interactive benchmarking tool to understand how your annual report measures up against other listed companies.

Planning your report

Our essential guide provides an overview of the key survey findings. It also enables you to:

  • quickly see the regulatory changes influencing the annual reporting landscape;
  • understand a number of recent reporting trends and gain insight into real life good practice examples; and
  • learn how you can take steps now to improve your own annual reporting process.
     
Planning your report

The steps to a better report

Our framework for improving your annual report is broken down into four levels for simplicity. Download our infographic for guidance on how to tackle those important questions for each level of the planning process.

A quick dip

The full details

Our in-depth report clearly sets out the current requirements governing annual reports, the changes coming into force over the next year or so, regulatory hotspots and links to further resources.

The full details contains guidance and analysis on a variety of issues including:

  • the use of Alternative Performance Measures (APMs);
  • how companies have complied with regulatory changes;
  • discussion of business models;
  • latest trends and innovations in corporate reporting including good practice examples;
  • connectivity between sections of an annual report;
  • presentation of KPIs; and
  • observations on approaches to the new longer term viability statement and risk management disclosures.

Throughout the document we consider the topic of Integrated Reporting which is clearly becoming more prevalent in UK companies' annual reporting.

How do you compare?

How many pages long is your annual report?

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How many principal risks do you disclose?

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How many non-financial KPIs do you present in your report?

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How many pages long is your note of accounting policies?

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How many critical judgements and key sources of estimation uncertainty have you included in your annual report?

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Do you make use of non-GAAP performance measures (such as adjusted profit) in the summary section of your annual report?

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Companies that use such measures in the summary section or elsewhere in the front half of their report should ensure that their presentation complies with the ESMA Guidelines on Alternative Performance measures, which are now in force. See chapter 3 of A clear vision – The full details for more information.

Does your report set out how your business creates value for stakeholders other than shareholders?

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Although including such information is useful, it is important that the report makes clear why creating value for these groups also helps to create long-term value for shareholders, who are the primary users of the annual report. See chapter 6 of A clear vision – The full details for more information.

Does your report show how your KPIs measure the success of your strategy by linking KPIs to the strategy elements they relate to?

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This is just one example of the various linkages that can be illustrated by a company in its annual report. Providing clear linkage helps users understand how the various sections of the report fit together as a whole. See chapter 4 of A clear vision – The full details for more information.

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