Non-financial disclosures in the annual report. The Second Asian Roundtable on Corporate Governance (June 2000, Hong Kong) Roger Adams Head of Technical Services and Research Association of Chartered Certified Accountants. Presentation overview. Aspects of non-financial disclosure
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The Second Asian Roundtable on Corporate Governance
(June 2000, Hong Kong)
Head of Technical Services and Research Association of Chartered Certified Accountants
“Leading companies are beginning to build stakeholder trust and simultaneously improve their business performance by measuring and reporting on both financial and non-financial indicators related to such issues as environmental management, worker relations and social responsibility. In fact, they are creating a new kind of competitive advantage by linking value and values, to position themselves as the companies of choice among customers, employees, investors, suppliers, business partners and local communities”.
KPMG “Beyond the Numbers”
have a significant role to play in enabling boards to fulfil their newly enlarged responsibilities under the Combined Code
- a separate report?
“A framework for the directors to discuss and analyse the business’s performance and the factors underlying its results and financial position, in order to assist users to assess for themselves the future potential of the business”
(UK ASB 1993)
i.A fair review of the development of the company’s / group’s business over the year and position at the end of it, including material post year end events, operating performance and material changes
ii. The company’s purpose, strategy and principal drivers of performance
iii. An account of the company’s key relationships, with employees, customers, suppliers and others, on which its success depends.
iv. Corporate governance - values and structures
v. Dynamics of the business: known events, trends, uncertainties and other factors which may substantially affect future performance
vi. Environmental policies and performance, including compliance with relevant laws and regulations
vii. Policies and performance on community, social, ethical and reputational issues
viii. Receipts from, and returns to shareholders
“Modern Company Law for a Competitive Economy” UK Company law Review Steering Group.
“ training of accountants?Companies are recognising that failure in many non-financial areas can heavily damage the bottom line, perhaps irreparably”
“Because most general business risks derive from non-financial factors, organisations have found that how they manage those business risks can influence their financial success”.Conclusions - 2(from “Beyond the Numbers” - KPMG 2000)