FAR, Stockholm, 6 th April 2016 Stig Enevoldsen & Bo Lagerström

Transcription

1 Fédération des Experts-comptables Européens FAR, Stockholm, 6 th April 2016 Stig Enevoldsen & Bo Lagerström Deputy Chair & member FEE Corporate Reporting Policy Group Connect with European Professional 1

2 FEE: the voice of the European profession 50 institutes 875,000 professionals 37 countries 28 EU member states 2

3 Structure of the Cogito Paper Introductory Section and 4 chapters 1. Growing Audience 2. Content: Financial and Non-financial reporting 3. Core and More 4. Approach to Policy Making and Innovation Focus on TECHNOLOGY as driver and enabler of change 3

4 Financial statements (FS) losing market share" Decision-maker information Will we have FS in 10 years time? Other Sources Unstructured Financial statements Structured 1950 Year

5 Reporting of the future There is so much information on the internet Has the IT/internet changed your way of working? Should it change reporting? Do you think it will change reporting? 5

6 Reporting TODAY Paper based (80's/90's thinking) Long, detailed and complex reports Shareholder view Not timely Mainly confirmatory 502 PAGES 6

7 FUTURE of Corporate Reporting How do we get Annual Reports to drive share prices? How do we get youngsters to read Annual Reports? Should reporting adjust to the new technologies? 7

8 Technology (IT) as driver and enabler for change At the heart of change Enables lively presentation Focus on relevant and material information Enhances readability on screen Enhances calculations, storage, processes, connectivity, cross-checking, references 8

9 TECHNOLOGY An example - SAP And IT will continue to change 9

10 TECHNOLOGY an example: SAP 10

11 TECHNOLOGY Other examples And IT will continue to change 11

12 Chapter 1: Growing Audience Technology Growing access Growing interest Growing audience Technology 12

13 Chapter 1: Growing Audience Accountability to a wider group of stakeholders Separate reports to each stakeholder group is not sustainable Two way communication is essential 13

14 Chapter 2.1: Financial Information Information to be issued earlier (more timely) Financial Statements to be less voluminous Less detailed disclosure requirements Integrate info in Management Reports and notes to avoid duplication Notes grouped after content (subjects) and importance 14

15 Chapter 2.1: Financial Information Only present the most important accounting policies in a prominent place Move policies of less importance to less prominence or at fixed place at a website Do not think in paper or PDF terms, but think screen (hyperlinks, richness, connectivity, interactivity of information) 15

16 Chapter 2.2: Non-Financial Information NFI Interconnection between financial and nonfinancial NFI is key to have a complete picture Many new requirements/standards Move towards one universal principles based reporting framework 16

17 Chapter 3 CORE & MORE Bring all reporting together in one combined report Consisting of One CORE (summary) report MORE reports can be accessed via drilling vertically and horizontally Technology is key for CORE & MORE New tools to support presentation (e.g. videos, moving graphs and interactivity) 17

18 Chapter 3: CORE & MORE 18

19 CORE and MORE: Structure of the Report CORE More More More More More More More 19

20 Chapter 3: CORE and MORE - Updating The building blocks might be updated at different times Building blocks might be added, replaced or removed How much updating is allowed? Example: Newspaper versus news website 20

21 Chapter 3: CORE and MORE - Updating Example: Newspaper versus news website 21

22 Future of Corporate Reporting and Need for debate and experimentation Is there agreement on the issues to be solved? If yes, who should own the agenda? <IR> is the most developed and promising initiative FEE s Core & More idea is compatible with <IR> 22

23 Chapter 4: Policy Making and Innovation Allow parallel experimental reporting Use opportunities of emerging IT and stimulate innovation Change the compliance approach and remove barriers Stakeholder coordination with policy makers and standard setters 23

24 Let s think about 24

25 Join the debate Discussion paper FEE welcomes responses by 30 June 2016 For updates, follow #FutureCorporateReporting Join our LinkedIn group 25

26 Stay connected FEE website Monthly e-newsletter Connect with European 26