In recent years, the criticism of current financial reporting has become increasingly louder. On the one hand, the lack of relevance of the information provided is denounced; on the other hand, the scope of the annual reports and consolidated financial statements is constantly expanding, so that the actual core statements are lost among the many details (“disclosure overload”).
The reasons for this are diverse. They range from new requirements made by the parties setting the standards, to the interpretation and enforcement of requirements by statutory auditors and enforcers, to a perspective that is more oriented towards formal compliance than relevance.
Agenda of the International Accounting Standards Board (IASB)
On the agenda of the IASB, the topic of “Better Communication in Financial Reporting” is of great importance and will continue to play an important role in the future. For example, the IASB is currently dealing with the structure and content of the “Primary Financial Statements,” with questions of how and where information should be disclosed (“Principles of Disclosures”) or the determination of materiality.
ESMA Opinion on Improvement in Reporting
In October 2015, the European Securities and Markets Authority (ESMA) highlighted the need to improve the quality of financial reporting (business reporting). The aim is for companies to address their specific needs instead of using standard formulations. Relevant information should be made available in an easily accessible way, contribute to clarity and conciseness on the basis of the principle of materiality, improve the readability of financial reports and provide consistent information overall. ESMA encourages companies to take the decisive steps while statutory auditors and national enforcers simultaneously contribute to this development.
Optimization of your Business Reporting
We will help you achieve your individual goals of optimizing your business reporting. Our experience has shown that these are diverse and include, for example, the goal of a quantitative reduction of the annual report, a qualitative improvement in financial reporting or the annual report rating.
Our scalable, proven approach that can be adapted to your needs lets us work with you to quickly achieve the goal jointly and efficiently.
Business Reporting – FAS AG Services
You will receive a systematic and structured analysis of your company management report and Group management report as well as your consolidated financial statements – and we will give you an assessment of the potential for optimization in advance as part of a quick scan, if requested.
- Our recommendations have a sound basis, such as the IASB Disclosure Initiative and announcements by the European Securities and Markets Authority (ESMA) and DRS 20.
- You will receive recommendations for alternative forms of presentation and structuring, backed up with examples of best practice.
- A documented result serves as the basis for subsequent internal and external reconciliations.
- Our experienced consultants will support and accompany you in implementation and communication, for example with the statutory auditor and the auditing firm.
The implementation of a large number of business reporting projects has given our employees considerable experience in corporate reporting. Since we are experts in the area of finance and accounting in accordance with IFRS and HGB and have former Big Four auditors, we have extensive knowledge of the accounting standards and their interpretation. This in particular enables us to professionally interpret the principle of materiality and to distinguish accepted and practicable ways from other options.
Our contact partners would be glad to speak with you personally!
Your Benefit – Our Objective
- Focusing reporting on the relevant topics
- Modern financial reporting designed for the target group
- Lower production costs due to a reduction in scope
- Free space for internal resources by reducing the workload with additional capacities
- Lower susceptibility to errors by avoiding redundancies
- Motivation of your employees and higher fun factor through more extensive design possibilities
- Fast and efficient support thanks to a mentality that focuses on the goals and implementation while pursuing the work pragmatically with a hands-on approach.
- Professional advice as equals with a statutory auditor
- Information and consideration of current developments (e.g. ESMA statement on alternative key performance indicators, CSR Directive, integrated reporting, quarterly reports)
If you are interested or have any questions, please contact us.