Deloitte today published a report revealing the impact that pending changes to corporate interim reporting will have on UK companies. The report – The half-time results: Reviewing and revising corporate interim reporting – includes guidance and model accounts to assist companies in reporting under the new requirements.

Isobel Sharp, partner at Deloitte, commented: “The EU’s Transparency Directive, while watered down from its earlier drafts, and international accounting standard IAS 34 Interim Financial Reporting will result in significant reporting changes for UK companies.

“Although increased transparency is always an important consideration, these changes will undoubtedly lead to an extra compliance burden on UK listed companies. Our survey into current reporting practices reveals 79% of companies are not currently reporting as frequently as they will be required to do.”

Major changes to corporate interim reporting include:

• Companies will be required to produce at least two “interim management statements” and this will be an increased burden for companies that do not already produce either monthly or quarterly reports (only 21% of those surveyed produce them currently).
• The Transparency Directive will require half yearly results to be published within two months of the period end. 38% of companies surveyed currently report in the third month after the period end.
• Explanatory narrative sections in half-yearly reports will need to cover the principal risks and uncertainties for the remaining six months of the year and to report major related party transactions to meet the Directive’s requirements.
• IAS 34 requires segmented information on revenue and results for business or geographical segments. At present only half of those surveyed provide this with their financial information.

The survey featured in the report involved examining the interim reports of 100 listed FTSE 350 companies, selected at random, published in 2004.  Similar surveys were carried out in 2002, 1999 and 1995 to provide comparison of interim reporting practice over time.

Isobel Sharp commented: “UK companies’ speed of reporting has improved, for example the 38% currently taking over two months to publish after period end is down from 51% in 2002.  This report offers insight into the impact of these forthcoming changes on listed companies and guidance to those finding the increased reporting a challenge.

The half-time results - reviewing and revising corporate interim reporting’ is available at www.deloitte.co.uk

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About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP.

Deloitte & Touche LLP is the UK's fastest growing major professional services firm based in 21 UK locations, with over 10,000 staff nationwide and fee income of £1,246 million in 2003/2004. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

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.