Investors are increasingly demanding more information related to strategy and forecasting, according to EY.
In a survey of 500 CFOs, nearly three-quarters (74%) of respondents stated that company reporting needed to “move beyond compliance” and provide information that would be of benefit to current and potential investors, particularly on areas such as strategy and forecasting.
The report by the professional services firm, entitled Connected Reporting: responding to complexity and rising stakeholder demands, surveyed CFOs of organisations with revenues exceeding $1bn.
The findings revealed that there is now a greater focus by CFOs on how company reporting is used by investors to gain a strategic understanding of the vision of the company.
The majority of respondents felt that improvements in this area were required, with just 20% stating that they felt their current corporate reporting was “highly effective in meeting external stakeholder needs”.
Peter Wollmert, EY’s global and EMEIA financial accounting advisory services leader, said: “Regulatory compliance is the cornerstone of providing confidence to the capital markets, yet it is clear that CFOs are increasingly aware of the need to move beyond this and provide information that will give them an edge over their competitors when attracting investors.”
He added: “At the same time, they have to improve the range of data they provide internally to satisfy management, board and audit committee demands.”