The ValueReporting™ Framework consists of four categories of information:
1.Market Overview – Describing the industry dynamics facing the company, including the competitive, regulatory and macro-economic environments.
2. Strategy – Covering the company's strategy, goals and objectives, organisational design and governance structure.
3. Value Creating Activities – Describing the activities and relationships that underpin financial performance, including key non-financial areas relating to customers, people, innovation, brands and the supply chain, and environmental, social and ethical concerns.
4. Financial Performance – Presenting the metrics used by management to monitor financial performance, and linking them to the company's strategy. This section should clearly detail issues such as business segmentation and the relationship between risk and return, as well as the ability to generate cash and reconcile internal performance measures to those reported externally to stakeholders.
Applying ValueReporting™, you will benefit in different ways:
- better clarity and transparency to investors and other corporate stakeholders
- increased management credibility
- more long-term investors
- greater analyst following
- improved access to and lower cost of capital
- higher share prices (if justified)
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