The last few weeks have seen the first blush of the new Interim Management Statements (IMSs) required from UK listed companies.  For accounting periods beginning on or after 20 January 2007, new rules came into effect requiring companies to publish an additional report twice annually around quarter one and quarter three of the financial year.  These short statements have to meet only a few rules but a Deloitte study of 20 listed companies, “Early Learning – the first Interim Management Statements”, shows a wide variety of practices emerging, including:

• Three companies out of 17 with January year ends (ie 18%) failed to issue their IMSs in the required time frame;
• While all the issued IMSs discussed financial performance, only half covered the financial position of the business although this is a requirement of the UK Listing Authority rules;
• 80% of the IMS reporters commented on material transactions and events in the first few months; and
• While numerical data is not explicitly required in an IMS, no one reported purely in narrative.

Commenting on these early findings, Deloitte Audit Partner, Isobel Sharp said:

“We have found wide varieties in practices and perhaps this should be encouraged.  Yes, few clearly ticked all the boxes required by the rules.  But, when we compared the information to the market in 2007, with what had been published in 2006, there were marked improvements.  A question remains around the enforcement of the new IMS.  While the Financial Reporting Review Panel has not explicitly stated its view, it will probably consider the IMS outside of its remit.  The UKLA is planning to review IMSs in 12-18 months’ time, with a view to providing more guidance if necessary”.

Ends

Notes for editors
For further information, read the executive summary and download our publication Early Learning - The first Interim Management Statements. 

For further details on IMSs and the other implications of the EU Transparency Obligations Directive for UK listed companies, read the executive summary and download our publication Clear all year - Considering new rules and practice in interim reporting. 

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.