A process of describing the market position, market strategy as well as future prospects of a business, is called Narrative Reporting. These include the non-financial details that are reported every year for a company. The motive is to provide a broad and clearer picture of the company’s market position, strategy, its performance and future prospects.
Narrative reporting encompasses the following:
– Strategic report – Directors’ report
– The Chairman’s statement – The Director’s financial report
– Corporate governance disclosure
These are the practices according to the UK Corporate Governance. There is the Financial Reporting Council (FRC) in the region, responsible for activities done for narrative reporting. This council that operates in the UK and the Republic of Ireland is an independent regulator that promotes high-quality corporate governance as well as reporting for the purpose of fostering investment.
This is where a company can get guidance on all aspects of the company governance and reporting. The FRC provides Financial Reporting Lab reports, which entail discussion results obtained from investors, concerning best practice disclosures for certain sectors. Besides the FRC, market position, strategy, performance and future prospects are supported and guided by the Narrative Reporting Framework. Here are a number of guidelines, regulations and amendments used by the FRC to achieve their goals. The framework includes:
– The Companies, Partnerships and Groups (Accounts and Non-financial Reporting) Regulations of 2016
– FRC Draft amendments to Guidance on the Strategic Report of 2017
– The Companies Act 2006 & Strategic Report and Director’s Report Regulations of 2013
– FRC Guidance on the Strategic Report of 2014
– BEIS Non-financial Reporting Directive: Government Response to consultation on implementation of the 2016 Directive
– Defra Environmental reporting guidelines (Including mandatory greenhouse gas emissions reporting guidance) of 2013
These and Financial Reporting Council Guidance, Financial Reporting Lab Reports as well as other developments are useful in company governance reporting. When you perform a market positioning, you may need the FRC. Considering that positioning is the most powerful concept in the marketing field it would be important to have a proper company governance and reporting. You will avoid financial risk by attending to the demands of your consumers. You need a business plan that outlines strategy on how you will find and attract customers or clients to your business or products.
This will go a long way in determining what you will really achieve through your company’s business and marketing plan. It is therefore important to have a company governance and reporting that ensures you have an ideal marketing strategy. Of course, the market trend of your company is important. This assists you when you want to determine future prospects. The market trend demonstrates a particular direction your company moves towards in a given period of time. This can be used to predict market future prospects. Here is the other reason Narrative Reporting is essential.Tags: Financial Reporting, Financial Reporting Council, Narrative Reporting