Financial Risk Manager

Ways of Financial and Risk Management

Some Principles to Reduce Complexity in Annual Returns

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There are eight principles for reducing complexity in the annual reports of the companies which are as per following;

Regulations Should Be:

  1. Targeted -  to provide relevant information that meets important user needs.
  2. Proportionate - limiting constant change in regulation by intervening only when an area is high risk and change will bring obvious benefit.
  3. Coordinated - regulators should understand what other regulators are doing in a particular area
  4. Clear - regulations should be simple and user friendly
Communication in Reporting Should Be:
  1. Focused- important messages, transactions and policies should be highlighted
  2. Open and honest - reporting should give a balanced explanation of results
  3. Clear and understandable - reporting should use plain language
  4. Interesting and engaging - reporting should get the point across and hold the reader's attention.

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posted @ 4:48 PM,

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