Last month, twenty-six members of the Corporate Reporting Users’ Forum wrote to the Financial Times to highlight the need for improved cash flow reporting. A copy of our letter is attached.
One specific area of concern is that some companies no longer provide sufficient disclosure to reconcile cash flow with the movement in net debt. This omission can undermine investors’ confidence in their ability to understand what drives debt movements, which is clearly undesirable in current economic environment. Given the focus on cash flow, debt levels and loan facilities, helping investors understand what drives debt movements is more important than ever. We greatly appreciate those companies that do provide this voluntary disclosure and strongly encourage those who do not to follow suit.
