Thursday 1 January 2009

ICGN: statement and guidance on non-financial business reporting

The International Corporate Governance Network has published a statement and guidance on non-financial business reporting. The aim of the statement and guidance is set out in the document's preamble as follows:

to emphasise [the importance of non-financial reporting] within the overall context of company reporting and promote better understanding by setting out disclosure criteria that will assist companies in meeting the expectations of investors. As such, the ICGN Statement and Guidance aims to generate substantive dialogue between investors and company boards about the content and timing of non-financial business reporting".

The ICGN identifies several qualities of non-financial business reporting, including:
  • be genuinely informative and include forward-looking elements where this will enhance understanding;
  • be material, relevant and timely;
  • describe the company’s strategy, and associated risks and opportunities, and explain the board’s role in assessing and overseeing strategy and the management of risks and opportunities;
  • be accessible and appropriately integrated with other information that enables investors to obtain a whole picture of the company;
  • use key performance indicators that are linked to strategy and facilitate comparisons;
  • use objective metrics where they apply and evidence-based estimates where they do not;
  • be strengthened where possible by independent assurance that is carried out having regard to established disclosure standards applicable to non-financial business reporting, such as those issued by the IASB.

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