Article by Martyn Jones, Sarah Kershaw, Ian Krieger, Alice Patrick, Kirsty Searles, Isobel Sharp and David Viles
The imposition of a statutory Operating and Financial Review (OFR)
on listed companies will represent a significant task for all and a
considerable challenge and burden for many.
The new OFR regime has been implemented with a reasonably light
touch. It is mandatory only for quoted companies. Its focus is
reporting to members. Its required contents build on those
recommended since 1993.
But the evidence from this 2005 survey of narrative practices is that
companies will have much to do to ensure the front pages of their
annual reports meet the new requirements set out in law and in
Reporting Standard 1 from the Accounting Standards Board.
At present, 82% of listed companies either produce a formal OFR
or clearly adopt the broad recommendations on OFR statements.
This is a considerable improvement from 61% in 2003. But there
are many shortcomings when
