Transparency - hallmark of top annual reports
It is why the judging in the Best Annual Report Award is weighted on how forthcoming and clear a company is about disclosure in its annual reports.
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WHEN was the last time you read a company's annual report for reasons beyond work? No one would blame you if you cannot recall when you last reached for one. With pages numbering 100 to close to 300, we can all understand why. However, you may be missing much. Let me explain.
An annual report is painstakingly prepared, not merely as a report card on company performance. It explains at great length how a company creates value and steers into charted and uncharted business arenas. In short, it is a treasure trove of analyses, strategies and plans, explaining how risks are managed and value is created. Recognising the annual report's crucial role, the Best Annual Report Award (BARA) was introduced in 1974 under the Singapore Corporate Awards, organised by the Institute of Singapore Chartered Accountants, the Singapore Institute of Directors and The Business Times. The aim is to encourage excellence in corporate reporting beyond the minimum regulatory requirements, to meet the needs of investors and other stakeholders, including employees, creditors and the public. In promoting both social and environmental sustainability reporting, not just financial reporting, the BARA recognises companies which take a serious view of communicating their responsibilities to the wider community.
If annual reports are a treasure trove of information to stakeholders, including competitors, would it not erode the company's competitive edge by revealing its cards?
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