The Financial Reporting Lab has published a framework covering the 12 characteristics fundamental for future digital reporting, which marks the first report from its digital future project set up to address concerns that the use of technology in corporate reporting is not meeting its full potential
Phil Fitz-Gerald, director of the Lab, said: ‘Technology will change the way that companies communicate with investors in the future. This report sets out the characteristics that companies, investors and other stakeholders want to see in any future digital reporting framework.
‘We encourage consideration of these characteristics in the development of future reporting systems. This will enable companies to enhance their reporting in an increasingly digitally enabled world.’
The Lab asked preparers, investors, and others what they wanted from a future digitally enabled system of corporate reporting, surveying 93 individuals from 14 different countries, and conducting detailed interviews with more than 30 companies and other stakeholders, as well as holding a range of outreach events.
The responses have been used to construct a framework. This encompasses 12 characteristics of digital reporting, split into three main areas of activity.
From a production perspective, digital reports should be cost efficient, easy to produce, compatible and timely. Their distribution should be free, prompt, compliant and accessible. Finally, the Lab says such reports must be contextual, usable, credible and engaging.
In the next phase of the project the Lab will assess the extent to which technologies such as virtual reality, augmented reality, blockchain, XBRL, video, and other digital media fit the framework.
The Lab says it is keen to hear from technology experts and others with strong views on, or experience of, how technology might be used for corporate reporting, and will host tech-focused round tables during the course of 2017.
The Financial Reporting Lab report Digital Future A framework for future digital reporting is here.
