Financial statements are too 'cluttered' and important information is being lost as a result, according to financial directors participating in a recent survey.

The research carried out by Baker Tilly found that a significant majority (87%) of senior financial managers questioned, believed there was too much clutter on the disclosures and that current standards were leading to a checklist mentality among those completing them.

A further 88% considered that relevant information can be obscured by inconsequential and superfluous data, agreeing that simplifying financial statements would be made clearer and more easily understood.

Danielle Stewart, Baker Tilly's head of reporting support, said: 'It was interesting that so many people said that they felt financial reporting disclosures were 'cluttered' but we had suspected that this might be the case for some time. What concerned us more was that such a large number felt that key messages were lost as a result, a finding that should be of huge concern to finance directors and investors alike.'

Stewart acknowledged that the survey of 125 individuals - the majority of whom were FDs - will form an integral part of the firm's response to the Financial Reporting Council's discussion paper Thinking about financial reporting disclosures in a broader context and to the Towards a Disclosure Framework for the Notes consultation set up by the European Financial Reporting Advisory Group (EFRAG).