A new report from the Financial Reporting Lab states that investors are calling on companies to reassess how they report their performance metrics. The report, ‘Performance metrics – an investor perspective’, sets out investors’ views on the reporting of performance metrics. It includes a framework and set of questions for companies and their boards to consider when deciding on how they report their performance.
The metrics chosen by companies to report their performance should:
• be clearly aligned to the company’s strategic goals,
• be transparent on how they are calculated and
• provide sufficient information that allows comparisons to be made to previous years’ performance.
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