Shifting regulations and trends in reporting
A well prepared and factually correct financial statement is proof that a company is reliable, transparent and delivers quality results. At BDO, we understand the importance of tailoring reporting to target audience, ensuring content is accurate, and complying with legal requirements as well as stakeholders’ expectations. Reporting requirements will also change over time. New rules are constantly emerging regarding reporting, presentation, and disclosures. On top of this there are also trends in how financial reports are prepared.
As an example of standard-setting in the area, the IASB® is currently leading a ‘disclosure project’ reviewing how disclosures should be presented in IFRS® financial statements. The project has, among other things, clarified the regulations regarding which accounting principles should be presented in an annual report and emphasises the importance of company-related information.
When was the last time you reviewed the accounting principles and valuation sections of your annual report? Would you like to revise the structure of your annual report? Have you considered how the contents can be presented in a more engaging manner for those interested?
At BDO, we can assist you in reviewing interim and annual reports, and identifying potential areas for improvement, as well as highlight how accounting developments impact financial statements.
There are also requirements for companies to provide annual reports and information digitally. As of the beginning of the financial year, starting January 1st, 2021, listed companies on regulated markets are required to submit their annual reports electronically in accordance with European Single Electronic Format (ESEF). There is even the possibility for all limited companies to electronically submit annual reports and consolidated accounts prepared in accordance with K2 and K3. Should you have any questions regarding electronic reporting, please do not hesitate to contact us.