 For the last two years, the emphasis has been on providing more information in existing reports. Consequently, as Deloitte reported in October 2006, the average number of pages in a listed company's annual report in 2006 was 85 compared to 71 in 2005. 2007 will see change in this trend. Instead of the rules simply calling for more information in existing reports, the cry will be more information and more reports.
The principle cause of the current changes is the implementation of the EU Transparency Obligations Directive (TOD) through amendments to the UK Listing Authority's rules. The impact of the TOD includes:
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requiring fully listed companies to issue interim management statements (IMS) twice a year;
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amending half-yearly reports so that they comply with IAS 34 on interim financial reporting;
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bringing forward the deadlines for reports so that half-yearly reports now must be issued within two calendar months of the period end and annual reports within four months; and
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directors having to report explicitly that financial statements give a true and fair view and narrative reports provide a fair review of the performance and position of the business;
This publication looks at how these changes will affect British companies by comparing the new requirements with present practice in half-yearly and other reports as measured in a survey of current practice. It also looks at how reporting practice has changed by comparing the reults of this survey with four previous surveys published in 2005, 2002, 1999 and 1995.
For more information, download our publication Clear all year - Considering new rules and practice in interim reporting (760 KB, PDF).
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