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The annual report provides an opportunity to communicate key information to investors about the company’s performance, strategy and future prospects. The strategic report should therefore be presented in a user-friendly, clear and concise manner. Furthermore, in an era where, for example, cyber-risk, climate change and Brexit pose economic, social and environmental uncertainty, the FRC encourages companies to consider a broad range of factors when determining principal risks and uncertainties facing the business and performing their analysis for the viability statement.
In particular investors expect:
Paul George, FRC’s Executive Director for Corporate Governance and Reporting, said:
"Annual reports are the main source of information for investors who need to understand how the company is performing to allow them to judge the long-term prospects for their investment.
In the light of Brexit, it is imperative to promote strong investment in UK markets, and to do so there must be constructive engagement between investors and companies. The annual report is the main factor in this engagement and by enabling investors to make more informed decisions, the long-term prospects of the company will be enhanced.”