Thank you to everyone who entered to win a copy of our new title, A Practical Guide to Good Company Reporting. Congratulations to Ms Vuorinen and Miss Carpenter FCIS who wrote the winning entries.
Author and judge, Tony Hoskins stated: 'There were many extremely good responses, so the final choice was difficult. In assessing the question, it is necessary to take the perspective of the shareholder and the potential investors and lenders. In this respect, “relevance” is synonymous with “materiality” - a term that is now used very widely both in the UK Corporate Governance Code and in the FRC’s guidance on “Towards Clear and Concise Reporting”. It is tempting to say that all three attributes are important but if needing to choose one, then “relevance” is the most important because without that attribute, readers of annual reports would find them of little value in their decision making regarding the company in question.'
Tony Hoskins states in 'A Practical Guide to Good Company Reporting' that corporate reporting needs to have 'reliability, relevance and consistent comparability' – in 50 words or less, which do you think is most important and why?
Ms Vuorinen: Reliability and consistent comparability should go without saying - relevance is most important because information must be such that it enables informed decision making. It also makes decision processes more transparent, as it can be evidenced that the information used to come to a conclusion was relevant to the process.
Miss Carpenter FCIS: Relevance is the most important requirement. Accounts already have to be fair, balanced and understandable in accordance with FRC requirements. But to the average shareholder they also have to be relevant and cover both historical outcomes and future strategy to persuade the shareholder to maintain or increase their investment.
Thank you to everyone that entered. Everyone that submitted a valid entry will be receiving an ICSA Shop voucher worth £10