Competition for capital in today’s environment is fierce. Failure to communicate effectively with the capital markets can result in poor capital allocation decisions and a weak understanding by the capital markets of your businesses strategies and performance prospects.

There is growing acceptance that current financial and sustainability reporting practices are of limited use for those seeking to differentiate between competing investment opportunities or influence corporate reputation.

As a result, there is worldwide momentum towards better business reporting.

Businesses that make the transition towards improved communication with the capital markets now stand to reap significant benefits both now and in the future.

The journey

The journey to better business reporting is continuing. It begins by improving and consolidating what is already reported. This includes improvements to financial information, sustainability reports and management commentary.

The next step in the journey aims to overcome the limitations of today’s reporting model by incorporating forward-looking, strategic key performance indicators and using management commentary as an opportunity to bring this together.

The endgame

The outcome for better business reporting is the development of a flagship business report that fully integrates critical business performance information, traditional financial reporting, management commentary and sustainability reporting to allow external analysts, investors and others to make informed judgements about the entity’s prospects.

The formation of the International Integrated Reporting Committee (IIRC) is one of the most significant developments in business reporting in recent years. The IIRC released the International Integrated Reporting Framework in December 2013.

The benefits

The benefits of better business reporting include:

  • more efficient capital allocation
  • streamlined reporting processes
  • reduced reporting costs
  • enhanced organisational clarity in terms of business strategy and the business model.

Related websites and publications

Simon Wilkins

Simon Wilkins

Head of KPMG IMPACT

KPMG in New Zealand

Connect with us

Guy's back and head, looking through whiteboard

Cutting the clutter in financial reports

Financial reports must be clear, relevant and easy to understand. De-clutter your reports and gain deeper insights into the health of your business.
SDG boy smiling water

How to report on the SDGs

This study explains how to report on the SDGs, where to start and what good looks like.

You may be interested in

Financial statement
Financial statement
Accounting Advisory Services
Accounting Advisory Services
Accounting Advisory Services

KPMG can assist with complex financial reporting, systems and accounting challenges, and accounting support for due diligence and tax assignments.

KPMG can assist with complex financial reporting, systems and accounting challenges, and accounting support for due diligence and tax assignments.

Accounting Advisory Services team can assist with complex financial reporting.

Audit Committee Institute
Audit Committee Institute
Audit Committee Institute (ACI)
Audit Committee Institute (ACI)
Audit Committee Institute (ACI)

Helping audit committee members keep up with relevant business issues and to enhance practices and processes.

Helping audit committee members keep up with relevant business issues and to enhance practices and processes.

Helping audit committee members keep up with relevant business issues.

purple waves
purple waves
Regulatory Audit
Regulatory Audit
Regulatory Audit

Our Audit practice assists with a range of compliance obligations by conducting independent audits and reviews of financial information and data.

Our Audit practice assists with a range of compliance obligations by conducting independent audits and reviews of financial information and data.

We conduct independent audits and reviews of financial information and data.

Tablet with bar graph, pen and phone on desk
Tablet with bar graph, pen and phone on desk
Assurance & Related Services
Assurance & Related Services
Assurance & Related Services

Independent assurance and verification adds credibility to your organisation’s disclosures, reporting, processes and controls.

Independent assurance and verification adds credibility to your organisation’s disclosures, reporting, processes and controls.

Independent assurance adds credibility to disclosures, reporting, processes and controls.