What's important

To ensure a corporate reporting model evolves that is fit for purpose, it is critical that the information needs of preparers and users are well understood and form the cornerstone of any debate around the future direction of travel.

The pursuit of such an understanding has therefore been the centrepiece of all our research. Critically, investors need a good understanding of both historical and likely future performance if they are to properly assess and value a company. Furthermore they need to be provided with financial and narrative/contextual information necessary to supplement and complement the financial statements.

Therefore, our research and insights have focused around two broad headings:

Rethinking the financials to provide greater clarity and granularity on critical elements of the financial reporting model. To date we have focused on revenue, costs, segmental performance, pensions, debt and the use of Non-GAAP measures.

Modelling the future through the provision of contextual information that allows investors to assess the quality and sustainability of future cash flows. This includes executive remuneration, corporate governance and narrative reporting.