It is not as if UK companies were not confused enough already. They have had a mountain of regulation on financial reporting standards and risk reporting to enforce in the past couple of years.
This year they were beginning to implement a mandatory version of an operating and financial review, which grew out of demands for companies to produce more qualitative information, similar to the management discussion and analysis information that US companies produce.
Then, while they were in the last phases of producing OFRs for this reporting season, Gordon Brown, chancellor of the exchequer, removed its mandatory status.
At the same time measures intended to produce similar results – greater narrative, risk and strategy reporting – are coming closer in the form of two European Commission directives, one on modernisation and the other on transparency. Companies face a chaotic time working out what they must do.
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