Annual reports get more chatty
Article Date: Oct 16 2009Companies are becoming more communicative in their annual reports, according to a study from accountancy firm Deloitte.
Some 83 per cent of listed companies commented on their capital structure and financing in the narrative section of this year’s annual report, compared with 47 per cent last year, the study finds. The number discussing liquidity issues more than doubled, from 22 per cent to 47 per cent.
The length of an annual report has increased by 3 per cent compared with last year, and 41 per cent compared to 2005.
Isobel Sharp, an audit partner at Deloitte, says regulation is behind the changes, with growing requirements for companies to provide information.
Adds Sharp, ‘Companies have performed better in 2009 than in 2008 in meeting the disclosure demands which are diverse, disjointed, different and dysfunctional.’
The annual reports of 100 listed companies, not including investment trusts, were analysed in the study.
