UK companies are increasing the amount of non-mandatory information in their half-yearly financial reports, a Deloitte survey found.
Nine out of ten of corporates disclosed information on the main business risks and the number of companies reporting going concern uncertainties is growing.
In particular, 3% of companies, compared to none in 2010, had an ‘emphasis of matter’ paragraph to stress significant uncertainties on whether the business is a going concern.
The survey also found that almost half of corporates met or exceeded the required information on principal risks and uncertainties. Non-mandatory key-performance indicators were provided by 98% of survey participants.
The research Split and polish: Surveying half-yearly financial reporting surveyed 30 investments trusts and 100 corporates in 350 companies, equally split by market capitalisation in the London Stock Exchange.
It revealed that only 13% of corporates and 3% of trusts met all the requirements for the narrative element of the half-yearly report demonstrating compliance with the rules on interim management.
Deloitte senior technical partner Isobel Sharp said 2012 will be a quiet year as far as changes in the rules for half-yearly financial reports and “this presents an opportunity for those corporates to improve and polish up 2012 reports, particularly in areas where results are split,” Sharp concluded.