Corporate Reporting Practices

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Gender Accountability Reporting; presented at xxxi st Indian Accounting Association Conference and International seminar held on 22nd 23rd Nov'2008 at Gujarat University Ahmedabad.

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Corporate Reporting Practices

  1. 1. Technical Session-I Corporate Reporting & Accounting Standards in the Global Scenario:
  2. 2. <ul><li>INTRODUCTION: </li></ul><ul><li>What is corporate reporting? </li></ul><ul><li>Corporate reporting framework: </li></ul><ul><li>Benefits of reporting </li></ul><ul><li>NEW TRENDS IN REPORTING: </li></ul><ul><li>Latest developments : </li></ul><ul><li>Corporate social responsibility (CSR) perspective </li></ul><ul><li>Insights drawn : </li></ul><ul><li>Global trends : </li></ul><ul><li>Good practices : </li></ul><ul><li>Reporting Tips : </li></ul>
  3. 3. INTRODUCTION: <ul><li>reporting is considered a core business intelligence (BI) </li></ul><ul><li>allows organizations to easily access, format, and deliver information </li></ul><ul><li>to employees, customers, and Stakeholders </li></ul>
  4. 4. What is corporate reporting? <ul><li>relate to the presentation and disclosure aspects on: </li></ul><ul><li>Financial reporting </li></ul><ul><li>Corporate governance </li></ul><ul><li>Executive remuneration </li></ul><ul><li>Corporate responsibility </li></ul><ul><li>Narrative reporting </li></ul>
  5. 5. Corporate reporting framework:
  6. 6. Benefits of reporting <ul><li>1. Company benefits: </li></ul><ul><li>Improved financial performance; </li></ul><ul><li>Lower operating costs; </li></ul><ul><li>Enhanced brand image and reputation; </li></ul><ul><li>Increased sales and customer loyalty; </li></ul><ul><li>Greater productivity and quality; </li></ul><ul><li>More ability to attract and retain employees; </li></ul><ul><li>Reduced regulatory oversight; </li></ul><ul><li>Access to capital; </li></ul><ul><li>Workforce diversity; </li></ul><ul><li>Product safety and decreased liability. </li></ul>
  7. 7. 2. Benefits to the community and the general public: <ul><li>Charitable contributions; </li></ul><ul><li>Employee volunteer programmes; </li></ul><ul><li>Corporate involvement in community education, employment and homelessness programmes; </li></ul><ul><li>Product safety and quality. </li></ul>
  8. 8. 3. Environmental benefits: <ul><li>Greater material recyclability; </li></ul><ul><li>Better product durability and </li></ul><ul><li>functionality; </li></ul><ul><li>Greater use of renewable resources; </li></ul><ul><li>Integration of environmental management tools into business plans, including life-cycle assessment and costing, environmental management standards, and eco-labelling. </li></ul>
  9. 9. NEW TRENDS IN REPORTING: <ul><li>Corporate Reporting Compliance through Web Sites </li></ul><ul><li>Developments in company reporting on workplace gender equality </li></ul><ul><li>( Sarbanes-Oxley US example ) </li></ul><ul><li>Reporting has emerged as Global & International Responsibility (IFRS) </li></ul><ul><li>As Business Action for Sustainable Development </li></ul><ul><li>Corporate reporting is not just form-filling </li></ul><ul><li>Corporate’s social responsibility </li></ul>
  10. 10. Latest developments : <ul><li>Amendments to IAS 39 and IFRS 7 </li></ul><ul><li>Legislation and guidance </li></ul><ul><li>Effective on-line reporting </li></ul><ul><li>Transparency in energy company accounts </li></ul><ul><li>Excutive remuneration </li></ul><ul><li>FRCouncil periodical reviews </li></ul><ul><li>disclosure Key Performance Indicators </li></ul><ul><li>on carbon emissions </li></ul>
  11. 11. Corporate social responsibility (CSR) perspective: Some of the drivers pushing business towards CSR include : <ul><li>The shrinking role of government </li></ul><ul><li>Demands for greater disclosure </li></ul><ul><li>Increased customer interest </li></ul><ul><li>Growing investor pressure </li></ul><ul><li>Competitive labour markets </li></ul><ul><li>Supplier relations </li></ul><ul><li>Developments in company reporting on workplace gender equality </li></ul>
  12. 12. Insights drawn : <ul><li>reports are weak on disclosure and market context for investor needs </li></ul><ul><li>Getting to grips with non-GAAP measures - pitch variances </li></ul><ul><li>Take sustainability to heart – make it a mantra </li></ul><ul><li>Emissions reporting as per new report requirements </li></ul><ul><li>Improvement to the Financial Reporting Supply Chain and Areas for Future Actions. </li></ul><ul><li>Draft the New Sustainability reports. </li></ul><ul><li>Annual reports to be featured on You-Tube : </li></ul>
  13. 13. <ul><li>Report Leadership - executive remuneration </li></ul><ul><li>Report Leadership - online reporting </li></ul><ul><li>Show more than the money </li></ul><ul><li>Comply Chartered Institute of Management Accountants (CIMA) </li></ul><ul><li>Shareholder friendly report </li></ul><ul><li>Best Practice Environmental Social and Governance Reporting </li></ul>
  14. 14. Global trends : <ul><li>The Australian Reporting Environment – </li></ul><ul><li>Telling it like it is </li></ul><ul><li>Tax Transparency Framework’ 2007 </li></ul><ul><li>to report on carbon activity disclosures </li></ul><ul><li>Corporate reporting be not reduced to form- </li></ul><ul><li>filling. </li></ul><ul><li>Learning to learn from the Global </li></ul><ul><li>experiences. </li></ul><ul><li>The Business Review and AIM(Alternative </li></ul><ul><li>Investment Market ) </li></ul>
  15. 15. Good practices : <ul><li>Selecting examples in reporting </li></ul><ul><li>Building Public Trust Awards for excedllence in reporting </li></ul><ul><li>Bringing ideas to life </li></ul><ul><li>Shareholder friendly report </li></ul><ul><li>Best Practice Environmental Social and Governance Reporting </li></ul>
  16. 16. Reporting Tips : <ul><li>Have a backbone – thru Strategic statements </li></ul><ul><li>Present the big picture- Put your results in the context of market trends </li></ul><ul><li>Whom are you kidding? - Provide an honest and open analysis of both the upsides and the challenges the company faces. </li></ul><ul><li>Flash in the pains pan - provide charts to help investors understand what is driving revenue and profit growth. Is the growth sustainable, or not? </li></ul>
  17. 17. <ul><li>Cash is king -'Let's clear up the cash flow statement </li></ul><ul><li>Report is not the kitchen sink - The important things are no more prominent than the things that aren't important.' Highlight principal risks, not all risks. </li></ul><ul><li>Bottom up - 'The area where there is greatest potential for increased disclosure that would add value </li></ul><ul><li>Bridging the GAAP - Embrace non-GAAP measures but apply certain ground rules “reconcile non-GAAP back to GAAP” </li></ul>
  18. 18. <ul><li>You owe it to the Creditors - Debt information </li></ul><ul><li>Metrics that pay Explain clearly how management are incentivised </li></ul><ul><li>Wood for the trees Key information and messages can get lost in the volume of data and the use of jargon </li></ul>
  19. 20. <ul><li>Dr. M.G.Hiremath. </li></ul><ul><li>& </li></ul><ul><li>Dr. (Smt) S.S.Aralelimath. </li></ul><ul><li>Dept of Commerce & Accountancy </li></ul><ul><li>KLS Gogte College of Commerce </li></ul><ul><li>Belgaum-590006 (Karnataka) </li></ul><ul><li>Cell No: 094489 89384 </li></ul><ul><li>e Mail: [email_address] </li></ul>Thank you-

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