Subject
Despite being abolished, OFR still going strong
Half of FTSE 100 companies continue to produce operating
and financial reviews (OFRs), despite chancellor Gordon Brown’s unilateral
decision to abolish them just over a year ago, a
report by
Tomorrow’s Company has found.
Brown replaced the mandatory OFR with a less demanding
business review requirement, but the report found that 48 FTSE 100 companies
still describe their narrative report as an OFR. Tomorrow’s Company inferred
from this that many businesses have found tangible benefits to be had
from more detailed reporting on business prospects than required by the business
review.
Mark Godyer, a Tomorrow’s Company director, argued the
report suggests these 48 companies believe inclusive reporting can lead to
better governance, better decision making, and ultimately benefits shareholders
and customers.
He added that the deep confusion many companies felt
after the chancellor’s decision is beginning to clear, and the focus now needs
to be on continuously improving narrative reporting and working towards a more
informed debate with investors.
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March 2007 |
