Narrative content and communication
As in previous years our criteria are based on the Accounting Standards Board’s Operating and Financial Review Reporting Statement. This year we have added an additional element from the ASB’s guidance – Financial Position, covering issues such as debt ratios, foreign currency exposure, contractual obligations and underlying financial performance.
Our full list of 11 criteria includes nine from the ASB’s guidance and two that assess the report’s accessibility and design.
- 1. Business overview
- 2. Marketplace
- 3. Strategy
- 4. KPIs
- 5. Financial position
- 6. Risk management information
- 7. Forward-looking information
- 8. Relationships and responsibility
- 9. Employees
- 10. Navigation
- 11. Appeal
In gauging each report, a maximum of 10 points was awarded against each criterion, with the exception of Financial Position. Points for this new criterion were not included in each company’s total, as we have only assessed new reports and did not backtrack on reports reviewed in Summer 2008 (e.g. March 2008 year-end reports).