A new study on year-end financial results reporting reveals UK financial reporting is behind the times
LONDON, Jan. 26, 2018 /PRNewswire/ --
- As the largest US-based global companies kick off 2017 full year financial reporting season, research shows a massive gap between the US and UK in report timeliness
- In 2017, the average Financial Times Stock Exchange 100 Index (FTSE 100) company took 53 days to announce full and comprehensive year-end financial results, compared to 54 days in 2002
- The average for the New York Stock Exchange largest 100 companies (NYSE 100) was 30 days
- In 2016, Carillion (UK) took 60 days to report year-end results, while larger organizations like Haliburton (US), Skanska (Sweden) and Vinci (France) took between 25-38 days
- 25% of FTSE100 companies do not comply with the International Accounting Standards Board's best practice recommendation from 1998 of reporting year-end financial results within 60 days
- Why should UK stakeholders wait for detailed financial reporting?
Despite huge technological advances, and the UK's biggest companies spending billions on financial systems, very few stakeholders benefit from improved timeliness of corporate financial reporting or earlier annual report and accounts production.
Stakeholders in the UK's biggest public companies only have one opportunity for an annual, detailed review of important financial success markers including profitability, cash flow, directors remuneration, environmental policy, total tax contribution and more. This opportunity exists through year-end reporting, when detailed preliminary announcements are released, followed by a full, audited set of financial statements.
Explaining the Time Warp
"Companies often cite the growth in volume and complexity of data reported in the year-end financial statements as the reason behind delayed shareholder reporting," comments David Jones, Managing Director of Column5 Consulting and Chairman of EPM International, the group responsible for this report.
"Many companies and regulators alike fail to properly prioritise these timelines; however, some exceptional UK companies like Diageo and Unilever realise that stakeholders appreciate receiving information in a timely manner, demonstrating the efficiency, effectiveness and quality of the company's financial processes and systems. The UK's largest companies should release year-end results within a month. In an environment when corporate behaviour is closely scrutinized, stakeholders deserve this much."
Challenging the FTSE100
The benefits of a faster close for the organisation itself and its stakeholders are significant. We challenge FTSE100 companies to review reporting timetables and consider the benefits of improvement.
It's time for regulators and the UK stock market to give clear guidance on timely reporting. The IASB recommendation has not been updated in 17 years, and nearly a quarter of the FTSE100 ignore it. Stakeholders deserve better.
To download the full 2017 Close Cycle Rankings Report please use the link below:
For more information on the 2017 Close Cycle Rankings contact David JH Jones, ACA, Managing Director, Column5 Consulting UK and Chairman of EPM International at firstname.lastname@example.org.
About EPM International
EPM International is the only global integrated Enterprise Performance Management (EPM) consulting network. EPM is an umbrella term that describes all of the processes, methodologies, metrics and systems needed to measure and manage an organizations performance. The EPM International members are four leading EPM consultancies with operations in nine European, North American and Asian countries and over 600 consultants, working with many diverse companies across multiple industries including some of the world's largest multinational corporations. The members of EPM International are: Column5 Consulting Group, (USA, UK), ifb group (Germany, Switzerland, Austria, China, Luxemburg, USA), ValorGest (Portugal), Capacent (Sweden, Norway, Finland), and MDS Ap (Middle East, Turkey). www.epm-international.com
Column5 is the world's premier consulting firm dedicated to providing high-value services that help customers leverage the power of SAP's Enterprise Performance Management product suite. Column5 was founded in 2005 by key players from OutlookSoft, and quickly evolved into a global team of experts who are uniquely qualified to properly design and deliver comprehensive systems, addressing a wide range of industry and process-specific requirements. Column5's custom tailored solutions combine proven software with unparalleled technical skills and visionary enterprise performance management process expertise to deliver prompt return on investment, long-term independence and a competitive edge for our elite list of discerning clients. Additional information is available at http://www.column5.com.
SOURCE Column5 Consulting