Has Australia set a new standard in integrated reporting?
The Australian Securities Exchange (ASX) released guidance that has arguably been one of the most innovative and exciting recent moves in integrated reporting, globally
Back in February 2019, the Australian Securities Exchange (ASX) - Australia’s primary stock exchange - released guidance that has arguably been one of the most innovative and exciting recent moves in integrated reporting, globally.
It’s called Recommendation 4.3 (verification of corporate reporting).
1. What is Recommendation 4.3?
Recommendation 4.3 states that listed companies should disclose their process for verifying corporate reports, so investors can make more confident decisions.
‘It is important that investors understand the process by which the entity has satisfied itself that the report is materially accurate, balanced and provides investors with appropriate information to make informed investment decisions.'
2. How does this relate to integrated reporting?
The primary goal of integrated reporting is to elevate the quality and integrity of the information being supplied to providers of financial capital, so better capital allocation decisions can be made.
By being asked to disclose their process for verification of corporate reports, Australian listed companies are now having to actively and consistently demonstrate that their internal fact-checking process is robust and consistent enough to ensure investors have the most accurate information possible.
3. Why is this important?
For integrated reporting in the UK to evolve, it is vital to identify emerging practices in international markets. These practices not only hold significant potential to elevate the national standard of corporate reporting but will also ensure investors have greater confidence in the information they’re receiving.
Australia has arguably just set a new standard in verification that the rest of the world will likely need to start following in the near future.
About Atticus
Atticus’s verification software reduces the time it takes to verify corporate and investor reports by 60%, each year. Trusted by 2,500+ users across five continents, Atticus helps companies like National Grid (FTSE100) and Coles (ASX100) to improve the integrity and accuracy of information being disclosed to investors and the wider market.
For more information, visit www.atticus.tech or email Tom Ray: tom@atticus.tech.
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