ICSA has published a guidance note on good practice for annual reports.

The guidance note sets out what are, in ICSA’s view, the features of the best annual reports, strategic reports, board disclosures, audit and risk reports, remuneration reports, and sustainability and stakeholder disclosures. The guidance note also names companies that have won the ICSA Excellence in Governance Awards for their annual reports.

ICSA considers that the best annual reports:

1. show an understanding of the links between governance, shareholder value creation, and the avoidance of value destruction;
2. contain a full description, and explanation, of the business model and the strategy, with key performance indicators (KPIs), performance against targets, and important information cross referenced to elsewhere in the report;
3. discuss the principal risks to the strategy, the company’s risk appetite and culture, how the risk profile is changing, and how the risks are being managed;
4. demonstrate joined-up thinking that links strategy, pay, performance and risk;
5. explain the way the board runs itself and its committees, and how decisions are taken;
6. have a governance report that demonstrates clear ownership by the chairman and a real desire to use governance to enhance the business rather than as a ‘box-ticking’ exercise; and
7. recognise and balance the needs and expectations of different shareholder and stakeholder priorities.

ICSA has also published its final form summary contents check list for the annual report of a UK company, following a consultation in May 2014.

Read more

guidance on annual reports and http://bit.ly/1GCY8nU

checklist http://bit.ly/1O6aYdB