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Daily Insurance Industry News
Sunday 19th of August 2018
April 11, 2011

ASB campaigns for “clutter-free” financial reporting

by Gill Montia

Story link: ASB campaigns for “clutter-free” financial reporting

The Accounting Standards Board (ASB) of the Financial Reporting Council has published a paper that sets out its vision of “clutter-free” financial reporting.

The body, which promotes high-quality corporate reporting to foster investment, describes clutter as “immaterial disclosures that inhibit the ability to identify and understand relevant information, and explanatory information that remains unchanged from year-to-year”.

The ASB argues that clutter makes it harder for investors to find the salient points about the performance of a business and its prospects for long-term success.

The report therefore suggests practical aids for reducing clutter and includes illustrations of how disclosures might look without it.

ASB chairman, Roger Marshall, comments: “We want to encourage a change in behaviours, where annual reports are clear and clutter-free, focusing on the disclosures that really aid an understanding of the business and its long-term prospects.”

Comments on the report are welcome by 30th September and the Board plans to follow up on its work in the autumn.

 

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