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The Financial Reporting Council today launches the “Financial Reporting Lab” which brings together companies and investors to identify practical solutions to today's reporting problems, such as the length and complexity of reports and accounts.
It is the first time the Lab concept has been used to help solve corporate reporting problems which, for many years, have been the frustration of investors and companies alike.
The Lab's participants will be drawn from a diverse range of sectors and will include investors and representatives from a wide range of companies.
The FRC hopes the Lab will take a large part of the cost and risk out of the process of innovation and reduces the need for regulatory intervention. The Lab will contribute to the Government’s attempts to simplify companies' narrative reporting requirements.
Commenting on today's launch Stephen Haddrill, chief executive of the FRC, said: “For over a decade companies, investors and regulators have raised concerns about the increasing complexity and length of company reports. Initiatives from the FRC, such as Cutting Clutter, set the ball rolling. The creation of the Lab moves the debate on from theory to practice. The financial reporting community has chosen to come together to thrash out ways of making reports more useful to investors. Finding solutions will not be easy. The nature of global business, complex transactions and financial reporting standards all contribute to the situation we find ourselves in today. But we are encouraged by the broad support it has received from the business, investor and accounting communities. I would like to thank the members of the Lab Steering Group who have brought us to this point”.
Source: Financial Reporting Council
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