Guide to forward looking information
The corporate reporting debate is gathering pace worldwide whether in the form of legal requirements, guidance or evolving good practices. Aspects of this debate are, understandably, causing concern among preparers of annual reports. A key aspect is the provision of a "forward-looking orientation" which, in our experience, many companies find a real challenge.
But what does this mean in practice? Will it require providing competitively sensitive information? What about the reliability of such forward-looking information? Will companies face the threat of litigation? Will this mean making profit forecasts?
Put simply, the reporting of forward-looking information is a critical component of effective communication to the market and this "how to" guide has been developed to provide practical guidance on how it can be achieved. This guide is not just a theoretical paper – progressive companies worldwide are already adopting a forward-looking orientation in their narrative reporting.
To bring forward-looking reporting alive, we have included a collection of examples from some of these companies that demonstrate aspects of what we believe is effective communication of the future that others can learn from.
So regardless of whether it is described as a management discussion and analysis, operating and financial review, or something else, the issue remains "how well does your reporting articulate the direction of travel, in relation to the markets in which you operate, your chosen strategy and the performance that is delivered?"
