Narrative reporting: give yourself a head start

This publication provides companies with everything they need to consider in addressing the increasing demand for narrative and contextual information from evolving regulations, guidance and best practice.

Companies often bemoan the fact that they barely have time to actually run their business due to the ever-increasing demands for broader corporate reporting being made of them. Under such pressure, it is not surprising that companies often adopt a narrow response to these demands. However, many of them are actually focused as much on how businesses are run, as on reporting. For those who embrace these demands, rather than shy away from them, the opportunity exists to use them as a basis for creating real competitive advantage.

Narrative reporting offers a mechanism to support the creation of a more commercially attractive and differentiated picture of the business which can lead to better investor understanding and improved stakeholder relationships. Furthermore, the underlying process necessary to produce this information can also enhance Board effectiveness and improve governance.

Forward-looking companies are already seeking ways to turn these demands from a burden into an opportunity. However, if these opportunities are not grasped and the process is not planned adequately, businesses run the risk of damaging their reputation among stakeholders, their market rating and ultimately their competitive positioning - never mind the risk of legal and regulatory challenges.

So how can companies identify and maximise the opportunity this information provides while ensuring the risks are managed? At PricewaterhouseCoopers, we have used our expertise to create this essential guide to narrative reporting to help companies meet the demands and enable them to generate the benefits. The task of realising the opportunities needs time and effort, but our 10-point plan provides clear guidance on where this should be directed.