‘The lifeblood of the markets is information and any barriers to the flow represents imperfection. The more transparent the activities of the company, the more accurately securities will be valued.’ – Cadbury Report.
Mandatory disclosure examples:
– Statement of comprehensive income (income or profit and loss statement)
– Statement of financial position (balance sheet)
– Statement of cash flow
– Statement of changes in equity
– Operating segmental information
– Auditors’ report
– Corporate governance disclosure such as remuneration report and some items in the directors’ report (e.g. summary of operating position)
– In the UK, the business review is compulsory
– Risk information on capital cover – Basel 11.
Voluntary disclosure examples:
– Risk information
– Operating review
– Social and environmental information
– Chief executive’s review.