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For 56 years, the CICA Corporate Reporting Awards program has rewarded excellence in corporate reporting. Over the years, the interests of stakeholders have changed and widened and, currently, they are zeroing in on corporate governance disclosure, sustainability reporting and electronic disclosure. Expectations of transparency are also increasing, and the awards recognize that a company can be an example of excellence in corporate reporting only if it shows best practices in all of these areas. Until the early 1990s, the focus was on annual reports. While the hardcover annual report remains a cornerstone of the awards program, judges are also looking at interim reports, MD&A, website disclosures and earnings press releases. To take the new disclosures into account, the annual reporting category is now known as the financial reporting category. In 1991, the CICA published the Research Study Information to be included in the Annual Report to Shareholders. That study discussed the objectives of the annual report and, to help achieve those objectives, recommended what information it should provide in addition to the financial statements. The continued, widespread use of annual reports in performance reporting prompted the need to revise the guidance contained in the original study. A Study Group comprising current and former judges of the awards program was established for that purpose. The Study Group’s terms of reference were to: - assess the main objectives of corporate reporting to stakeholders;
- consider the perceived information needs of the primary users of corporate reports in terms of a company’s past, present and future activities;
- survey current corporate reporting practices and regulations in Canada and elsewhere;
- propose what information is needed in corporate reports, beyond the financial statements, to assist users in interpreting a company’s financial condition, results of operations and financing and investing activities; and
- provide guidance on the presentation of such information in corporate reporting to stakeholders.
The Study Group’s efforts produced this Research Study and an accompanying Highlights booklet, both of which address corporate reporting to stakeholders on a continuous basis. The CICA expresses its appreciation to Jerry Trites, FCA, and the members of the Study Group for the time and effort spent in completing this project. Equally appreciated is the work of Paul-Emile Roy, CA, who directed the research and drafted the research study. The views expressed in this publication are those of the Study Group and have not been formally endorsed by the CICA. Comments are welcome and should be addressed to J. Paul-Emile Roy, CA, Principal, Research Studies Department, CICA (research.studies@cica.ca). Toronto, December 2007 CICA Research Studies |
