Shareholder friendly report
A company's shareholders are probably its most important stakeholders in the reporting process and clearly communicating to them should be a priority. But existing reporting requirements often result in providing shareholders with lots of disclosure and compliance information, most of which is not necessarily relevant to retail shareholders.
To challenge the status quo and to encourage clear shareholder communication, PricewaterhouseCoopers Australia has worked with the Australian Institute of Company Directors to develop the Shareholder Friendly Report (SFR).
The SFR focuses on providing relevant information that retail shareholders need to make their investment decisions in the shape of an explanation of a company’s performance against its key strategies, as well as its future prospects. It includes certain 'Non GAAP' disclosures which the directors believe provide a clearer and more understandable picture of the company's performance and prospects.
It is a concise, easy-to-read report which, while conforming to accounting and auditing measurement standards, provides a score card of past and future board and management performance. Although not designed to replace the Annual Report nor the Concise Report, it is an alternative framework that companies should consider as a medium for clearer communication with their retail shareholders.
