Financial Accounting

Advisory Services (FAAS)

Connected reporting
Responding to complexity and
rising stakeholder demands
About the research
Our research surveyed 500 CFOs or heads of reporting of large organizations (with greater
than US$1b in revenue) to gain an understanding of the challenges facing them in the area
of corporate reporting. The research was conducted by Longitude Research on behalf of
the EY Global Financial Accounting Advisory Services (FAAS) group.

The respondents were divided between CFOs and group, divisional or regional controllers.
They were split evenly across Europe, Middle East, India and Africa (EMEIA), the Americas
and Asia-Pacific and Japan, and covered 16 main industry sectors.

The survey was supplemented by in-depth interviews with the following CFOs, heads of
reporting organizations and EY subject-matter professionals. These interviews add texture
and deeper insight.

Prat Bhatt Mark Minne

Senior Vice President, Corporate Vice President of Reporting & Information
Controller & Chief Accounting Officer, Service (RISE), Deutsche Telekom
Cisco Systems
Anders Pehrsson
Diederik Bossuyt Vice President, Group Controller, Atlas
Director, Group Controller, Belgacom Copco

June Cheryl A. Cabal-Revilla Yves Pellegrino

First Vice President, Financial Reporting Corporate Finance Director, Danone
and Controllership, Philippine Long
Distance Telephone Company (PLDT) Martin Schloemer
Head of Accounting Principles and
Jessica Chou Policies, Bayer AG
Chief Accounting Officer, Taiwan
Semiconductor Manufacturing Company Stone Shih
(TSMC) Chief Accounting Officer, Wistron
Corporation
Stephen Cosgrove
Vice President, Corporate Controller, Neri Bukspan
Chief Accounting Officer, Johnson & Financial Reporting and Disclosure
Johnson Leader, FAAS Americas, EY

Ian Hillier Joon Arn Chiang

Group Statutory Controller, Coca-Cola Asia-Pacific FAAS Leader, EY
Amatil
Andrew Davies
Linda Huang United Kingdom & Ireland (UK&I) FAAS
CFO, 500.com Leader, EY

Badr Jafar Karsten Fser

Chief Executive, Crescent Enterprises Global and EMEIA FAAS Markets Leader,
EY
Ivy Lai
Head of Finance, Greater China, Philips Kenneth Marshall
Americas FAAS Leader, EY
Sarvy Liu
CFO, Cond Nast Peter Wollmert
Global and EMEIA FAAS leader, EY

We would like to thank everyone who contributed their insights and expertise to this report.
 Foreword
Companies face an increasingly challenging reporting environment.
Globalization means that they have more complex operations
spanning different jurisdictions. The pace of regulatory change is
increasing, and investors and capital market participants have rising
demands. And, internally, the board and senior management are
requesting additional information. Three-quarters of respondents
say that the reporting environment has become more complex in
recent years.

Companies recognize the need for better reporting. Among

respondents, 74% agree that they should improve the information
they provide to external stakeholders. In addition, only a minority
rate the timeliness, cost, level of compliance and efficiency of
production of reporting as highly effective. Most recognize that
they have room for improvement in every area, but particularly in
speed of closing and degree of integration. The finance function
needs to ensure that reporting is meeting the different needs of
stakeholders, and that it is timely, accurate and consistent.

This report looks at the challenges companies face in their

reporting, assesses the current state of corporate reporting, and
examines the internal and external challenges to overcome in order
to improve reporting. It also identifies a solution to address the
increasing demands and complexity. Connected reporting brings

In this report together financial and non-financial information and combines

internal and external reporting, resulting in greater efficiency and
consistency.

Companies have to overcome obstacles when moving to connected

Executive summary 2 reporting. But the effort will be highly worthwhile. The benefits
Business complexity continues to rise 4 include better decision-making, better relationships with investors
and regulators, and a better reputation for the business. Most
Organizations face a more dynamic importantly, reporting can move beyond compliance to serve the
and demanding reporting environment 8 strategic vision of the company.
Internal and external challenges to I would like to thank the participants in our survey, and also
14
improved reporting are considerable those who provided interviews that added additional depth to the
research, for their valuable contributions.
Companies see substantial scope for
20
better reporting

Connected reporting would bring

24
a range of benefits

Conclusion 29 Peter Wollmert

Global and EMEIA FAAS Leader, EY

Connected reporting Responding to complexity and rising stakeholder demands 1

 Executive summary

Business complexity and therefore the

complexity of reporting continues to rise.
Globalization has led to a more complex business structure. This
means that companies have to comply with a wider range of
reporting standards. As companies grow, enter new markets and
develop new products and services, they inevitably face greater
complexity.

Organizations face a more dynamic and

demanding reporting environment.
Companies face increasing demands on reporting, driven by both
internal and external stakeholders. The number of reports that
companies issue is growing, and reporting is expanding to include
more financial and non-financial aspects. Non-financial reporting,
such as sustainability, will increasingly have to be covered, and
reporting will also tend to include forward-looking elements. Both
internal and external stakeholders are looking for more frequent
information. But they also expect that information to be accurate.
Companies will need to strike a careful balance between speed and
accuracy. They must also consider the needs of different audiences,
and ensure that their reporting is appropriate for different
requirements.

2 Connected reporting Responding to complexity and rising stakeholder demands

Internal and external challenges to improved Connected reporting would bring a range of
reporting are considerable. benefits.
The speed of regulatory change is such that companies find it Connected reporting is an approach to develop an organizations
difficult to keep pace. With limits on resources, companies need current reporting to bridge the gap between the different
to improve reporting efficiency. They can do this by integrating information requirements of internal and external audiences. It
or upgrading IT systems, making data more consistent and widely enables organizations to communicate their financial and non-
available, and optimizing processes. Finding the right talent for financial information, using consistent data, simplified IT structures
reporting functions, beyond the traditional accounting skill set, is and methods, in order to reduce complexity in the reporting
also a challenge. Downsizing of the finance function has made it process.
more difficult to have the available resources to improve reporting,
according to the majority of respondents. There is a strong aspiration to move toward connected reporting.
Companies recognize that this would strengthen the reporting
process and the quality of reporting. In turn, this would bring
Companies see substantial scope for better benefits for relationships with investors, connectivity with
reporting. regulators, decision-making and the reputation of the business.
They think that their reporting frameworks could be made However, many find it difficult to implement connected reporting.
less complex and time-consuming, and could provide better They will need to make progress in a number of areas for this
information. This would bring internal benefits in terms of greater aspiration to become reality. The most urgent steps needed are
accuracy, consistency and transparency that, in turn, would lead to to improve the availability, accuracy and consistency of data, and
better decision-making. invest in IT infrastructure.

Connected reporting Responding to complexity and rising stakeholder demands 3

 1 Business complexity
continues to rise

Globalization has led to a more complex business

structure. This means that companies have to
comply with a wider range of reporting standards. As
companies grow, enter new markets and develop new
products and services, they inevitably face greater
complexity.

4 Connected reporting Responding to complexity and rising stakeholder demands

Businesses today inhabit a more complex environment than at any Among the 500 companies that EY surveyed for this report, half
time in history. Over the past few decades, globalization has meant have more than 10 business units and one-third are active in more
a dramatic expansion in the scope and reach of many companies. than 10 countries. More than 60% have seen their number of legal
Even if companies are not selling their products in every region of entities and jurisdictions in which they operate increase over the
the world, it is likely that they have complex supply chains reaching past three years. Companies are also diversifying into other market
into distant markets, shared service centers and a range of other segments. Over the same period, more than 70% have increased
operational entities. the number of products and services they sell.

Chart 1
Companies are operating in an increasingly complex environment

Legal active entities Jurisdictions or countries in which you do business Business units
14.2% 14.2%
18.0% 21.0%

3.2% 30.3%

7.4% 6.8% 14.8%

40.3%

10.4%

32.3% 17.7%

34.9% 34.5%

Systems used for reporting Reporting standards with which you must comply
9.0% 11.8%
16.4%

18.4% 11.0%
12.0%

05
610
1115
33.5% 1620
26.5%
35.1% 26.3% 20+

Connected reporting Responding to complexity and rising stakeholder demands 5

Business complexity continues to rise

Greater business complexity is mirrored by greater reporting Increased business complexity inevitably complicates reporting.
complexity. Among our respondents, three-quarters have more than Wistron, a design manufacturer headquartered in Taiwan, has more
five reporting systems, and a similar number must comply with more than 70 legal entities globally. This poses considerable challenges
than five reporting standards. More than two-thirds have increased for moving to its target of one-day monthly closing. Its just the
the number of reports they issue over the past three years. fact that the nature of the business is so different in each country,
says Stone Shih, Chief Accounting Officer at Wistron Corporation.
Chart 2 We have to go through all the legal entities accounting statistics.
In the past three years, what change has there been to the following We discuss the target and the difficulties they will encounter, and
aspects of your business?
we have to try to solve them one by one. Sometimes, the system
can be an issue. So we also need to get the IT people involved
16 45 35 4 to understand the local accounting process and look for an IT
Number of legal
entities/business units solution.

Business growth also brings other challenges for reporting, as

Number of jurisdictions 16 45 35 4 Neri Bukspan, Financial Reporting and Disclosure Leader, FAAS
in which you operate Americas at EY, explains. As they become larger and more global,
companies experience a dramatic rate of change in regulations
25 47 23 41 and investor expectations, and face greater scrutiny from auditors,
Number of boards and institutional investors, he says. Investors and others
products/services sold
demand more information, and expect it to be robust, controlled
and timely.
17 43 37 3
Number of reporting
standards Therefore, as complexity rises, companies face the need to
upgrade their reporting infrastructure. Our reporting basis is
becoming bigger and more complicated, because of organic growth
13 38 40 8 1
Change in time taken for and acquisitions, says June Cheryl A. Cabal-Revilla, First Vice
monthly/quarterly and
President, Financial Reporting and Controllership at the Philippine
annual reporting
Long Distance Telephone Company (PLDT). We really need the
13 42 37 7 1 reporting infrastructure to go with the growth. So there are so
Internal resources
assigned for reporting many things to do in terms of upgrading our systems and looking at
purposes new models to improve our reporting.

20 46 28 6
At the same time, this increased complexity presents companies
Number of reports issued
with opportunities. With more data and information at their
disposal, they are better able to understand their business enabling
better insights, and can better align their internal reporting
No change Decrease
and management processes with what they report to external
Signicant increase Increase
stakeholders. This can strengthen decision-making, and provide
Signicant decrease
information that gives them a competitive edge. There are more
and much better ways to analyze information now than there have
ever been, says Karsten Fser, Global and EMEIA FAAS Markets
Leader at EY. The question is how you take all this information,
synthesize it and make it actionable.

6 Connected reporting Responding to complexity and rising stakeholder demands

As they become larger and more global,
companies experience a dramatic rate of
change in regulations and investor
expectations, and face greater scrutiny from
auditors, boards and institutional investors.
Neri Bukspan, Financial Reporting and Disclosure Leader, FAAS Americas, EY

Connected reporting Responding to complexity and rising stakeholder demands 7

 2 Organizations face
a more dynamic and
demanding reporting
environment
Companies face increasing demands on reporting, driven
by both internal and external stakeholders. The number
of reports companies issue is growing, and reporting is
expanding to include more financial and non-financial aspects.
Non-traditional areas, such as corporate responsibility and
sustainability, will increasingly have to be covered, and
reporting will also tend to include a forecasting element.

8 Connected reporting Responding to complexity and rising stakeholder demands

 Weve got tougher requirements set by the
authorities on the one hand, and by the
stakeholders on the other.
Mark Minne, Vice President of Reporting & Information Service (RISE),
Deutsche Telekom

Growing business complexity is coinciding with an increasingly Weve got tougher requirements set by the authorities on the one
complex reporting environment. Companies face more varied hand, and by the stakeholders on the other, says Mark Minne, Vice
demands than ever from external stakeholders. For example, they President of Reporting & Information Service (RISE) at Deutsche
must comply with a constant flow of regulatory and accounting Telekom. Weve also high pressure due to limited resources,
requirements. Three-quarters of respondents agree that the requirements regarding data quality, and last but not least,
reporting environment has become more complex in recent years. increasing compliance demands.

Chart 3 Regulatory requirements add to the challenge. Rather than

Please indicate whether you agree with the following statements simplifying reporting, they make it more complex and substantial.
Fifteen years ago, our main report was a leaflet of 30 pages,
We would like to adopt a more and now it is a big book of 400 pages, explains Yves Pellegrino,
connected approach to 34 42 18 4 2
reporting but nd this Corporate Finance Director at Danone. Even in the last few years,
difcult to make this happen the number of words is increasing by around 10% per year. But Im
in practice
not sure to what extent this reporting keeps on being fully useful to
The reporting environment 29 47 19 41 all the stakeholders, because its become very complex.
has become more complex in
recent years
Reporting is set to become yet more wide-ranging. There are now
We nd it very challenging many aspects of reporting: regulatory financial; management
to nd the right people with
24 39 26 9 2
and board; forecasting; governance; functional; corporate social
the right skills for our
reporting functions responsibility (CSR); remuneration; tax and people; sustainability
Downsizing of the nance
and integrated reporting. Each one may give rise to a portion of a
function has made it 22 37 29 10 2 report or a separate report.
increasingly difcult for us to
keep pace with changes in
the reporting environment Today, more than half of companies do not report some of these
There is signicant pressure on aspects, and the proportion that does is less than two-thirds for all
the nance function to provide 27 45 22 51
areas except regulatory and financial. In three years time, however,
more non-nancial reporting
information to internal and the proportion of companies expecting not to report on these areas
external stakeholders is less than 10% for each area. The biggest increases will be in
The shift toward greater 26 45 24 5 forecasting, sustainability, integrated reporting and CSR.
non-nancial reporting has
improved decision-making in
our business

Our management, board and

audit committee require
27 47 21 5
much more information and
analysis of both nancial and
non-nancial information

Agree strongly Agree slightly Neither agree nor disagree

Disagree slightly Disagree strongly

Connected reporting Responding to complexity and rising stakeholder demands 9

Organizations face a more dynamic and demanding reporting environment

Chart 4
Which of the following topics or elements does your current reporting
Different stakeholders with different needs
cover today, and which do you expect it to cover in three years time? Almost 70% of respondents agree that it is very challenging to
satisfy the different needs of external stakeholders with corporate
reporting. For example, on the one hand, regulatory requirements
demand highly detailed reports with a very high degree of
data accuracy to fixed timetables. On the other, investors may
78 17 5
Regulatory nancial require much more accessible, short-format information on key
reporting
performance indicators (KPIs) on as frequent a basis as possible.
As both regulators and financial reporting standards require a
61 32 7 significant volume of data to be presented in financial statements,
Management and board
reporting it can often be difficult for shareholders or investors to identify
the information they require, argues Andrew Davies, UK&I FAAS
Leader at EY.
49 43 8
Forecasts
One of the big challenges is keeping financial reports relevant to
the users. If youre reporting lots of insignificant facts, you risk
58 32 10 people walking away, confused as to whats really going on with
Governance reporting the business, says one senior finance executive from a major
multinational. External stakeholders want simpler language in
reporting. They dont want as much accounting language being
63 30 7 used, and prefer to have things stated in more easily understood
Functional reporting
terms.

Another key challenge is that most companies have a highly

52 39 9
Corporate social diversified investor base, all of whom expect slightly different
responsibility (CSR) reporting
information. The detail and emphasis required by a long-term
pension fund investor, for example, is likely to be quite different
63 28 9 from the information needed by an investor with much shorter
Remuneration, tax and
people reporting time horizons. Equity investors need different information from
debt investors. Satisfying the needs of all types of investors within
a single reporting framework can be extremely challenging. Some
47 44 9 investors may not be interested at all in sustainability reporting
Sustainability reporting
whereas, for others, it may be a critical component of their
investment policy, says Martin Schloemer, Head of Accounting
46 44 10 Principles and Policies at Bayer AG. Sustainability is very
Integrated reporting important for some long-term investors such as state funds, for
example.

Investors also now often require much more specialized data that is
Today In three years' time Neither not necessarily found in a US GAAP standard or an IFRS standard.
The sophistication of end users, and their ability and desire to
try to differentiate between peer group companies, has changed
over time, says Kenneth Marshall, Americas FAAS Leader at EY.

10 Connected reporting Responding to complexity and rising stakeholder demands

I think frequency would certainly be up there
as a key challenge. Not necessarily for
financial statements or full balance sheet
P&L, but the key numbers that a companys
investors may consider important.
Joon Arn Chiang, Asia-Pacific FAAS Leader, EY

Some now require more specialized data, by industry in particular. Chart 5

Often, that data is not necessarily lifted directly from a financial Please indicate whether you agree with the following statements
statement. Please indicate whether you agree with the following statements

This poses challenges in terms of collecting the information and The organizations 26 44 22 7 1
ensuring its accuracy. Companies may be used to applying high current reporting
standards to the regular financial data they report, but there is a framework is too complex
risk that additional information is treated with less rigor. I think
investors would like to see more formalized reporting of non- 25 51 17 61
External reports are too
financial information and how it relates to the financial statement. time-consuming to prepare
says Peter Wollmert, Global and EMEIA FAAS Leader at EY.
External stakeholders say 20 40 27 12 1
Irrespective of their specific needs, investors in general want that reports do not
information that gives them genuine insight into the opportunities contain enough of the
right information
and risks facing the business. Investors want to understand not
just where the company is, but where the company would like to 25 44 24 6 1
External stakeholders want
be, says Bukspan. They want more information about strategy. more frequent reports
They want to understand more about risks and not necessarily just
about the risks themselves, but about how they are being managed. It is very challenging to 25 43 24 7 1
These risks are not only financial risks, they could also include satisfy the needs of
operational risk, cyber security and others, none of which you different stakeholders with
external reporting
would expect to find in a financial report.
I believe we can introduce 29 48 18 41
Demands for frequency greater efciencies to our
reporting process

The pace of business is increasing, and companies are attracting

I believe that we need to 30 44 21 41
groups of investors with ever-shorter investment time horizons. improve the information we
Therefore, doubts are growing about whether the current reporting provide to stakeholders
cycle is fit for purpose. Increasingly, the standard reports, such as
the annual report, are regarded as reference materials. They have
less and less bearing on the investment decision-making process Agree Neither agree nor disagree
Agree strongly
and rarely result in market-moving information. More than two-
Disagree Disagree strongly
thirds of survey respondents agree that external stakeholders are
demanding more frequent reports.

I think frequency would certainly be up there as a key challenge,

says Joon Arn Chiang, Asia-Pacific FAAS Leader at EY. Not
necessarily for financial statements or full balance sheet and P&L,
but the key numbers that a companys investors may consider
important. For example, cash burn, revenue growth, margin or
costs associated with revenues. Also, non-financial information,
such as number of customers and acquisition costs per customer.

Connected reporting Responding to complexity and rising stakeholder demands 11

Organizations face a more dynamic and demanding reporting environment

The result of companies trying to satisfy the needs of different

stakeholders for both more specific and more frequent data,
while simultaneously facing increased regulatory complexity,
is a dramatically increased volume of reporting. Youve got a
situation where our clients need to be presenting information that
is digestible, on a real-time basis, and meaningful to their investor
communities and their constituents, while having to comply with
regulatory statutes. Therefore, you get a cacophony of financial
data, says Marshall.

Moreover, current reporting cycles simply may not be serving

investor needs. For example, take a company whose financial year
closes at the end of December. In some jurisdictions, although it
may make preliminary announcements, it may be two to three
They [investors] want more months before the annual report is finalized, depending on
exchange, or similar, requirements. How useful is that, three
information about strategy. months down the line? The time lag is not insignificant. I think one
of the greatest challenges is how relevant is this information thats
They want to understand being put out into the public domain a relatively long time after the
period to which it relates, says Davies.
more about risks and not
There is also pressure on companies to shorten the reporting cycle,
necessarily just about the so that external stakeholders receive information more quickly after

risks themselves, but about the books close. Wistron, for example, decided to implement one-
day monthly closing for their global operations. Shih explains that
how they are being this was driven by two factors. The first is external benchmarks.
Some of our competitors in Taiwan already had one-day closing
managed. These risks are not schedules. The second is the internal pressure. We were taking five
to ten days to finish the closing, and following that, we would have
only financial risks, they a review meeting with each business group. They were complaining
that, by the time wed finished reviewing, it was very close to the
could also include operational next month. And where a managerial response was needed, it was
too late. So we moved the closing and review meeting to as early as
risk, cyber security and possible.

others, none of which you However, shortening the cycle puts considerable pressure on the

would expect to find in a finance function. It condenses the reporting period into a much
shorter period, and gearing the entire machine to issue a report
financial report. on a particular day becomes very challenging when you have to
roll up information from multiple regions and divisions, and then
Neri Bukspan, Financial Reporting and Disclosure republish that information to investors in different parts of the
Leader, FAAS Americas, EY world, and include your management synthesis and analysis of that
information, says Bukspan.

12 Connected reporting Responding to complexity and rising stakeholder demands

Its important to strike the right balance.
Sometimes, we are too obsessed with the
precision of the information, because
achieving this precision takes time and, by
then, the information is arguably obsolete.
Yves Pellegrino, Corporate Finance Director, Danone

There are important trade-offs to consider between speed and level At the same time, there are also internal demands on reporting.
of detail. If you want a very high level of granularity combined with In a more complex and volatile environment, managements need
high frequency information, then that would be very challenging for information, supported by analysis, on which to base their
to achieve, says Pellegrino. Its important to strike the right decision-making, is increasing. Three-quarters of respondents say
balance. Sometimes, we are too obsessed with the precision of that the management, board and audit committee require much
the information, because achieving this precision takes time and, more information and analysis of both financial and non-financial
by then, the information is arguably obsolete. If you gave me a information. Internal users are always requesting more detailed
choice between information that was 80% accurate today, or 100% information, down to the customer and project level, says Shih.
accurate in three months time, I can tell you that I would, in most
cases, take the information that is available today. This potentially presents opportunities for synergies. If investors
are interested in this, then in most cases, executive management
An emphasis on forward-looking information are going to be interested in it as well, notes Fser. This highlights
the importance of tying together your external and internal
The emphasis on non-financial reporting is also increasing.Nearly reporting processes into a continuum, and ensuring that it is built
three-quarters of respondents say that there is pressure on into the DNA of your organization. By thinking of this information
the finance function to provide more non-financial reporting in a similar way, you have a much more effective process to
information to internal and external stakeholders. This includes re-purpose information, whether its for internal consumption,
areas such as governance, CSR, remuneration and sustainability external consumption, your board, management, investors, risk
reporting that many companies now recognize to be highly committees or others.
important for their external image.
A forward-looking focus requires a much more granular level of
Investors are increasingly looking for more forward-looking, data. We dont just need to know how many products we are
actionable information, including information about strategy, selling. We also need to know how many customers we have
sustainability and how risks are being managed. External compared with last month, what their profiles are, how we acquired
stakeholders are constantly requesting forward-looking information them and so on, says Bossuyt. The granularity of the data that
about the business plan, says Jessica Chou, Chief Accounting we need in order to get to that synthetic layer that enables us to
Officer at the Taiwan Semiconductor Manufacturing Company provide insightful, forward-looking information is exponentially
(TSMC). The financial reporting is important to our business higher.
because, not only is it the basis to earn stakeholders trust, but also
the best way to gauge the operating result against the business
plan and provide a basis for assessing the opportunity for further
improvement.

This trend mirrors the broader evolution of the finance function.

Diederik Bossuyt, Director, Group Controller at Belgacom, notes
that, as finance evolves from a controlling, backward-looking
function to a more strategic, forward-looking one, the philosophy
around reporting will change, too: As a result of this shift, there is
a greater emphasis on leading indicators than there was in the past,
when the focus was more on variance analysis.

Connected reporting Responding to complexity and rising stakeholder demands 13

 3 Internal and external
challenges to
improved reporting are
considerable
There are substantial challenges to improved reporting.
The speed of regulatory change is such that companies
find it difficult to keep pace. With limits on resources,
companies need to improve reporting efficiency, especially
by integrating or upgrading IT systems, strengthening
the consistency and availability of data, and optimizing
processes. Finding the right talent for reporting functions,
beyond the traditional accounting skill set, is also a
challenge. Downsizing of the finance function has made it
more difficult to have the available resources to improve
reporting, according to the majority of respondents.

14 Connected reporting Responding to complexity and rising stakeholder demands

External challenges include the speed of Chart 6
What do you consider to be the main external challenges of the current
change reporting environment?

A fluid, dynamic market environment is the number one external

reporting challenge, according to respondents. The pace of market 33.3%
change means that it is difficult for the finance function to provide Market developments
sufficiently rigorous data that is not swiftly out-of-date. Today,
31.5%
in any kind of business, if you start a budget cycle, already a few Capacity to communicate
on the business model
months later the conditions may have completely changed, so this
raises questions about the very principles of the budget, argues The number of
30.1%
Pellegrino. Therefore, the key challenge is to have a very frequent regulatory changes
update of the information needed to pilot the company.
26.3%
Pace of regulatory change
Companies also say that they find it challenging to develop the
capacity to communicate the business model. Schloemer of Unclear guidelines
23.4%
Bayer explains that this is a vital part of the companys reporting from regulators
framework. We need to be able to demonstrate what is attractive 22.8%
about our business to investors, he says. It is not only our growth Requirements for
fundraising
story which is important to the investors and their decisions
but also about the fact that we have a sustainable long-term Changing stakeholder 21.2%
expectations of information
business model. You have to transfer this knowledge so that these they expect to receive
stakeholders are able to understand our business model, combined 19.2%
Satisfying differences in
with the risks. This is only possible with very transparent reporting. reporting standards
(e.g., GAAPs)
Satisfying supra-national 17.8%
For complex businesses, presenting the companys activities in guidance and standards
an accessible way can be a major challenge. Particularly for (e.g., GRI, IIRC, IASB/FASB
conversion projects)
companies with as many moving pieces as ours, its hard to put into Changing expectations 17.2%
brief snippets, to bring out whats important, explains Stephen around frequency of
reporting requirements
Cosgrove, Vice President, Corporate Controller, Chief Accounting
12.4%
Officer at Johnson & Johnson. It takes a lot of thought and
Changes to technology
effort, and you have to be very focused on whats happening in the
business. There are no external
challenges with the current
4.0%
external reporting
environment
3.0%
Changing expectations
around reporting formats

Connected reporting Responding to complexity and rising stakeholder demands 15

Internal and external challenges to improved reporting are considerable

Regulatory change poses concerns Chart 7

Where has regulatory change in reporting impacted your organization the
Respondents also point to the number of accounting and financial most?
reporting requirement changes and the pace of this change as
a key challenge. This forces them to adapt their IT systems, and 47.5%
invest in more training and resources to deal with the compliance Need to adapt IT systems

challenges. Over the past few years, weve had a huge rise in the
volume of accounting standards that has meant financial reporting
has become more complex, says Davies. Changes in financial 37.5%
instruments, share-based payments, pensions and other accounting Need for more training
standards, have all increased quite dramatically the number of
disclosures required.
33.9%
Need to invest in
more resources

33.1%
Need to adapt
business processes

31.3%
Need to adapt
data architecture

29.5%
Need to adapt
governance structures

27.3%
Need for more accurate
and consistent data
Over the past few years, weve
had a huge rise in the volume Need to add further
10%

of accounting standards that policies and controls

has meant financial reporting

has become more complex.
Andrew Davies, UK&I FAAS Leader, EY

16 Connected reporting Responding to complexity and rising stakeholder demands

We need to be able to demonstrate what is attractive
about our business to investors ... not only our growth
story but ... that we have a sustainable long-term business
model.
Martin Schloemer, Head of Accounting Principles and Polices, Bayer AG

The convergence of accounting standards in recent years has been Companies face major internal challenges
a huge benefit for multinational companies. The fact that theres
been a convergence of accounting standards has made life easier The biggest internal challenge is time to produce reports.
for us, says Cabal-Revilla. Before, we used to prepare financial Companies are clearly struggling to gather and analyze
reports based on Philippines reporting, US reporting, Hong Kong information, and report in a timely way. This is not only because of
GAAP and GAAP in Japan. So we used to prepare four different the sheer volume of information and the need to ensure accuracy
financial statements. and timeliness. It is also because of internal inefficiencies and
resource constraints. The complexity of the organizational structure
Moves by national regulators to impose new requirements is also a key barrier, as is managing the cost of a highly involved
independently would threaten this progress. If, at some point, a reporting process.
certain region decided to carve out a new standard, say on leasing,
then we will be moving away from global accounting and that The finance function will need to build new connections to
concerns us, says Schloemer. Youd likely then see other regions bring together the increasingly diverse information required for
of the world start to apply a local accounting philosophy for certain reporting. Its partly about connecting the right competencies
issues and that would set us back by 20 to 30 years. within the firm, says Wollmert. For example, if you would like to
include technical information, such as the volume of emissions,
Rather, companies would like to see regulation rationalized to then of course you need people from the relevant technical
improve efficiency. At present, requirements from different departments to help the financial people to measure these KPIs.
regulatory bodies, even at a national level, frequently lead to
repetition in reporting. However, companies are concerned that The downsizing of the finance function has added to the challenge.
removing this would risk non-compliance. Companies tend to It has made it particularly difficult to keep pace with changes in the
duplicate disclosures, says Prat Bhatt, Senior Vice President, regulatory environment. Even where CFOs have been able to keep
Corporate Controller & Chief Accounting Officer at Cisco Systems. the same level of resources, the expansion of reporting means they
must do far more within those constraints. This means it is vital
If you take a 10-K report [US annual financial report], there are a to search for efficiencies. Id like resources to increase. But, quite
number of opportunities for improvement duplication being one honestly, the pressures of the business mean we try to do what we
of them. Companies dont fully optimize the document because can with the resources that we have, says Cosgrove.
they are satisfying the requirements and expectations of two
different frameworks: the Financial Accounting Standards Board
(FASB) accounting disclosure rules which cover the footnotes
to the financial statements and the SEC rules that govern the
Management Discussion and Analysis (MD&A). Those are not as
integrated as they could be, so companies often times dont want to
take the risk to remove that redundancy.

Connected reporting Responding to complexity and rising stakeholder demands 17

Internal and external challenges to improved reporting are considerable

Chart 8 Chart 9
What do you consider to be the main internal challenges associated with What do you consider to be the main technology challenges associated
corporate reporting? with corporate reporting?

34.9%
Time to produce 43.3%
Lack of integration between
IT systems
27.5%
Complexity of your
organizational structure
27.1% 36.7%
Managing costs Number of reporting
systems
23.8%
Duplication of effort
33.7%
21.4% Lack of automation across
Too much information systems

19.8%
Need to manage differing
reporting deadlines 31.7%
19.4% Difculties accessing data
Errors introduced
by manual intervention
17.4%
Need for manual
29.5%
reconciliations
Inconsistency in data
15.6%
Inconsistency of
reporting requirements
15.6% 28.9%
Time required for review Poor quality data
12.4%
Flexibility
11.8% 21%
Risk of restatements Dated IT systems

8.2%
Lack of available resources
in reporting team
13.4%
8.0%
Difculties responding to Dated IT architecture
major strategic changes
3.2%
Lack of available skills
in the reporting team There are no technology 5%
There are no internal 3.0% challenges with
challenges with corporate reporting
corporate reporting

18 Connected reporting Responding to complexity and rising stakeholder demands

Its partly about connecting the right competencies within
the firm. For example, if you would like to include technical
information, such as the volume of emissions, then of
course you need people from the relevant technical
departments to help the financial people to measure these
KPIs.
Peter Wollmert, Global and EMEIA FAAS Leader, EY

The lack of integration between systems is not the only technology Chart 10
challenge facing companies. Challenges also include the sheer Which of the following skills do you most need to improve your reporting
processes?
number of systems that many companies have in place and the
variances in data these can produce. We always have to invest
a lot of resources to keep our IT up to date, says Minne. We try 50.5%
to automate more and more of our information processes and Data/analytics
deliveries, and there is more and more IT as a basis for that. We
also have to bring in more staff who can work on the different IT
optimization projects in reporting. 42.9%
IT infrastructure

Talent is a key issue

Talent is another major challenge. With reporting pressures 35.1%
Business analysis
increasing, and cost pressures on the finance function remaining
intense, companies must find highly talented individuals who can
work productively and strengthen reporting processes, while at the 27.9%
same time minimizing costs. More than 60% of survey respondents Process knowledge
find it difficult to appoint the right people with the right skills for
reporting.
25.5%
The biggest skills gaps are in data and analytics. But companies Risk management

also struggle to find people to handle an increasingly complex

IT infrastructure, and the need for robust business analysis. In
22.8%
general, the finance function is moving from a reactive function to a Technical accounting skills
much more strategic, business partnering function, says Bossuyt.
So some skills are totally different. Today, a financial controller
needs to have insight into the strategy of the company and the 19.2%
business segments, as well as the soft skills to gather people and Regulatory knowledge
bring them to solutions. In addition, new tools and an orientation
toward much more specialized data brings new requirements on the
16.4%
technical side. Governance and corporate
responsibility knowledge

Bhatt agrees. A number of years ago, we broadened our approach

to external reporting. We were highly compliance-focused, but we 10.0%
Corporate securities and
wanted our team to have a deeper understanding of the business. amp; legal knowledge
So we re-tooled the team to bring in new skill sets, including people
who were broader in their business knowledge. Theyre still financial
9.8%
reporting experts, but they have a deeper understanding of the Investor relations and amp;
business. The entire framework in which theyre operating, including communications skills

the integration of a robust Disclosure Committee process, is much

broader and much more comprehensive than it was before. 2.6%
We do not need to improve
our reporting process

Connected reporting Responding to complexity and rising stakeholder demands 19

 4 Companies see
substantial scope for
better reporting

Companies see substantial scope for reporting to improve.

They think that their reporting frameworks could be made
less complex and time-consuming, and could provide better
information. This would also have internal benefits, in terms
of greater accuracy, consistency and transparency that, in
turn, would lead to better decision-making.

20 Connected reporting Responding to complexity and rising stakeholder demands

Most companies express fairly high levels of satisfaction with Chart 11
most aspects of their current reporting processes. Generally, they What degree of confidence do you have in the following aspects of your
reporting?
consider the timeliness, cost and level of compliance to be effective.
Most companies are not a disaster. In fact, many are quite good
in many areas. But most still have much, much more output and Degree of compliance with all 37 47 13 3
optimization that they could achieve, says Bukspan. It could be accounting, nance,
controlling, sustainability
systems. It could be integration of different naming conventions (e.g., GRI) reporting needs
among different divisions, the finish of and choice of KPIs, process
issues, cleanliness of data or IT. 31 46 20 3
Clarity and relevance of
messages to all audiences
There are areas of weakness. Only 30% say that they are fully
confident in areas such as consistency and completeness of data, Consistency and 30 44 23 3
clarity of documentation and consistency in application of KPIs. completeness of data used
across all reports, and for all
The problem many companies face is that a lot of the data they purposes and audiences
are reporting is outside of the audited financial statements, says
Marshall. Everything else is subject to scrutiny. But often, the Clarity of documentation 31 42 22 5
for processes, data and
scrutiny of that data is not as thorough as one would find in the data models
audited financial statements.
Flexibility of timing, 28 42 22 7 1
Among respondents, 70% agree that their current reporting frequency and format in
framework is too complex and 76% agree that it consumes too generation of reports

much time. I tend to question whether we publish too many

reports, says Ivy Lai, Head of Finance, Greater China at Philips. I Extent to which IT 32 35 25 7 1
think we are faced with a report overload situation. Internally, were environment is fully
integrated
doing something about it by changing some reports from a monthly
basis to a quarterly basis and doing away with others entirely. A
30 45 20 41
similar argument can be made for external reporting. I think a lot Consistency in application of
key performance indicators
of what needs to happen is a rationalization, integration as well as
a reduction of disclosures to make them more meaningful. Much
of it is not as necessary with the level of frequency weve come 29 43 23 41
Extent of benchmarking
to expect in the US. There could be much more of a prioritization reporting to peers
of disclosures based on criticality of the subject matter, argues
Bhatt. At Cisco, we have a very robust disclosure committee Having the appropriately 32 40 23 41
process that focuses not only on ensuring compliance but also on skilled resources to foster
effective connected
how best to provide the most meaningful information to investors reporting
and stakeholders that is delivered in a way that is most easily
consumed.
Fully condent Somewhat condent Neutral

Limited condence Not at all condent

Connected reporting Responding to complexity and rising stakeholder demands 21

Companies see substantial scope for better reporting

Improving efficiency Chart 12

How would you rate the following aspects of your corporate reporting?
In addition, 78% agree that they could introduce greater efficiencies
to the reporting process. Just 27% say that they are highly effective
at efficiency of production in corporate reporting, and only 25% are 38 37 21 4
very effective at speed of closing. Its a continuous improvement Timeliness

process, says Cosgrove. Each quarter, we sit down and say what
worked well and what could be better. Were not making dramatic
24 44 25 7
strides, but we are making incremental improvements each time Cost
we do things. Were using technology to help us. Were using
simplification to help us. We are doing a lot of benchmarking and
learning from others. 32 37 28 3
Level of compliance
Moves to improve efficiency sometimes involve the creation of
shared service centers that consolidate reporting. Deutsche
Telekom, for example, combined external reporting activity with 27 44 23 6
Efciency of production
an internal group and functional reporting within a single shared
service center. This was done especially to realize more efficiency
and synergy because we needed to reduce cost and also to align 26 39 25 9 1
external and internal reporting more closely, says Minne. Degree of integration

A key challenge in centralizing reporting is how to bring in the

local knowledge that is needed to support the data. Lai explains 25 38 28 9
Speed of closing
the issues for Philips. We set up Financial Planning and Analysis
Centers of Expertise (FP&A CoEs) several years ago. These CoEs
started generating standardized reports centrally and performing
24 44 26 5 1
high level analytics. Since then, the CoEs have gained tremendous Internal stakeholders' view
of reporting
experience on how to ensure that they stay very close to the
businesses, markets and functions they support, to deliver on their
requirements. We have also learned it is critical for the Business 20 46 27 61
External stakeholders' view
Partners (BPs) to fully engage, partner and team-up with their of reporting
dedicated FP&A CoE counterparts. Continued customer dedication
by FP&A is critical to ensure insightful and intimate analytical 28 42 23 61
support towards BPs. Condence of the board

Schloemer says that Bayer AG has been through a similar process,

moving to a global service center and accounting platform, but
with a layer of local resources in each region to deal with more Highly effective Effective, yet can be improved Appropriate
complex, higher-value tasks. We have tried to generate synergies Not as effective as we like it to be Not at all effective
by creating standardized processes that can be handled in a
service center, he explains. At the same time, you need people
located in each region who have broader knowledge and a deeper
understanding of the accounting philosophy. So, in this way,
we have separated pure process competence, which is handled
globally, from knowledge competence, which handles more complex
accounting issues within the region.

22 Connected reporting Responding to complexity and rising stakeholder demands

Quality of reporting content We have tried to generate
In addition to improving the efficiency of the reporting process,
synergies by creating
74% of respondents agree that they need to improve the quality
of information that they provide to external stakeholders. A key
standardized processes that
element of this involves moving beyond regulatory compliance.
Purely complying with regulators requirements does not tend to
can be handled in a service
result in reports that are accessible and useful to other external center. At the same time, you
stakeholders. A lot of companies are just sticking to the letter
of the law and producing everything that the law requires them need people located in each
region who have broader
to do, says Davies. They are not sitting back and saying: Are
there ways that we can reduce the amount of clutter, to make this
more readable, to use simpler English? And saying: While still
complying with the law, are we making the reporting really useful knowledge and a deeper
and understandable?.
understanding of the
Companies feel that reporting resources could be better deployed
to improve the quality of reporting, rather than focusing so
accounting philosophy. So, in
strongly on compliance.Its not necessarily the optimal use of this way, we have separated
resources, says Bhatt. The reports are drafted by people who
are often operating to manage compliance risk, as opposed to pure process competence,
focusing on the end deliverable. If you focus those resources more
on the quality of the deliverable, putting it together in a way thats which is handled globally, from
more comprehensible to users, theres probably a substitution of
resources that you can get to where they are providing more value- knowledge competence, which
add.
handles more complex
accounting issues within the
region.
Martin Schloemer, Head of Accounting Principles and
Policies, Bayer AG

Connected reporting Responding to complexity and rising stakeholder demands 23

 5 Connected reporting
would bring a range of
benefits
There is a strong aspiration to move toward connected
reporting. Companies recognize that this would strengthen
the reporting process and the quality of reporting. In
turn, this would bring benefits for relationships with
investors, connectivity with regulators, decision-making
and the reputation of the company. Many find it difficult
to implement connected reporting, and will need to make
progress in a number of areas for this aspiration to become
reality. The most urgent steps needed are to improve the
availability, accuracy and consistency of data, and invest in
IT infrastructure.

24 Connected reporting Responding to complexity and rising stakeholder demands

 Financial reporting is still often
seen as a compliance issue,
rather than a marketing or
reputational issue, when it has
the opportunity to be all three.
Andrew Davies, UK&I FAAS Leader, EY

Despite a background of increased complexity and the awareness the risk is very high that, for certain reporting items, different data
that reporting could be more efficient, many companies have been sources are used, says Wollmert. This is not helpful at all. It only
slow to recognize the wider benefits of improving their reporting. makes things more complicated. You get more disciplined if you
Financial reporting is still often seen as a compliance issue, rather have one connected report that is organized in a very consistent
than a marketing or reputational issue, when it has the opportunity way and uses the same data sources.
to be all three, says Davies.
Respondents see considerable benefits in moving to a connected
However, a growing number of companies recognize not just that reporting model, with 97% believing there is some benefit to
they could be more efficient in their reporting, but also that better adopting this approach. For example, Badr Jafar, Chief Executive
reporting would have benefits for investor relations and decision- Officer of Crescent Enterprises, says: The main benefits
making. Even when companies are interested, though, they are from connected reporting include: bridging the gap with what
not necessarily devoting enough attention to this issue. I think stakeholders expect to be reported by providing a basis for us to
the percentage of companies that are trying to use reporting as explain our value-creation process more effectively; providing
strategic messaging rather than a compliance exercise is large, greater transparency on the resources utilized by our organization;
says Bukspan. They really want to do it, but they havent spent and enabling better communication with stakeholders on our long-
much time on it. term vision and strategy which in turn generates greater trust.

Survey respondents cite the following leading benefits of connected

The benefits of connected reporting reporting: better relationships with investors, improved decision-
making, better ability to link external drivers with strategy and
Connected reporting offers a solution to the challenges of
forecast, better connectivity with regulators, and better reputation
improving reporting. It enables organizations to meet the increased
for their business.
demand for consistency on financial and non-financial information.
By connecting information, companies can improve both the
Greater integration of reporting can lead to improved decision-
decision-making process and the quality of the decisions they make,
making. This is because the company has a more rounded picture
and provide a better picture for external stakeholders.
of the factors influencing its strategic choices. We are moving
to a more advanced system, which makes it possible to combine
For Bossuyt, the close alignment of external and internal reporting
the data in different directions, in a better way than before, says
has been an important goal. External reporting is a very strong
Anders Pehrsson, Vice President, Group Controller at Atlas Copco.
help and guiding principle in getting an aligned view internally, he
Its mainly driven by internal requirements. We will understand
says. The expectations of external parties are very much driven by
movements in the market in a better way.
their willingness to see an alignment between what you tell them
and the overall strategy. The reporting must enable the external
stakeholders to see progress in achieving your strategic goals. You
need to tell them a story that enables them to envision how the
future will look.

Connected reporting also helps companies to address the

challenges of consolidation by bridging the gap between the
different requirements of internal and external audiences and
objectives. By helping to simplify IT structures and automating
systems and methods, it reduces complexity. This, in turn, supports
the production of consistent data and thus consistent, accurate
reporting process and messages. If you have different reports,

Connected reporting Responding to complexity and rising stakeholder demands 25

Connected reporting would bring a range of benefits

Chart 13 Moving to connected reporting

What would you consider to be the main benefits of a more connected
approach to reporting in your organization? Part of the reason for slow progress toward connected reporting,
even where the benefits are recognized, is that companies must
overcome major obstacles in order to implement it. The most
48.5% significant of these are improving the availability, accuracy and
Better relationships
with investors consistency of data, and investing in updated IT infrastructure.
Standardizing business processes is also crucial. Internally,
it is important to connect the right competencies within the
46.5% organization in order to provide all the information needed for
Improved decision-making
connected reporting.

Better ability to link external 45.3% There are two main steps that companies need to take, says
drivers with strategy Chiang. First, processes have to be upgraded meaning the
and forecast
actual flow of the information, how it gets captured, how it gets
transformed, and how to push output deliverables. Second,
42.9% overlay the IT system, because you want to automate as much of
Better connectivity
with regulators the capturing, accumulation, transformation and generation as
possible.
40.7%
Better reputation for The investment required will be worthwhile. It will generate
your business
considerable efficiency savings over time, and will make the
company well-placed to respond effectively to future changes in
24.6% reporting requirements. There are solutions, but you need to get
Greater accountability
for reporting the money set aside within the company to invest in them, says
Chiang. And you want to get not just a minimally sufficient system
in place, but a good one that is sustainable for future needs not
2.6%
There are no benets just known needs, but also unanticipated needs. If you make the
right investment upfront, which is more sustainable from a 10-year
perspective, youre saving a lot of time, money and people-cost.

This also requires a change of culture. Companies need to be more

strategic about their reporting, and decision-makers and other
internal stakeholders need to buy in to that approach. The biggest
thing is the change in mindset, says Chiang. People need to
acknowledge that the world is changing. Requirements in terms of
speed and depth of reporting are evolving, and we have to adapt.

Jafar explains what this adaptation requires internally. As with all

such strategic initiatives, the first and foremost challenge is one of
education. The process involves developing the mindset of not only
senior management but everyone within the organization. In effect,
there needs to be a paradigm shift in the organizational culture to
adopt and embrace this change holistically which doesnt happen
overnight and, which we are working towards achieving.

26 Connected reporting Responding to complexity and rising stakeholder demands

People need to acknowledge that the world is changing.
Requirements in terms of speed and depth of reporting
are evolving, and we have to adapt.
Joon Arn Chiang, Asia-Pacific FAAS Leader, EY

Ultimately, reporting should be seen in the context of how it can Chart 14

contribute to realizing the organizations strategic priorities. Which of the following steps would your organization need to take most
urgently in order to achieve a more connected reporting framework?
Wollmert explains: Companies have a strategic perspective, and
they need to analyze what that means for their reporting. This is
often not done. So my recommendation would be that companies
47.3%
look in a more strategic way at how they would like to develop their Improve data availability
reporting. and consistency

43.7%
Invest in IT infrastructure

The main benefits from

connected reporting include: Standardize business
processes
38.9%

bridging the gap with what

stakeholders expect to be Introduce reporting based on 30.1%
one common platform
or concept

reported by providing a basis for

26.9%
us to explain our value-creation Improve risk management

process more effectively;

26.3%
providing greater transparency Invest in accounting skills
and training

on the resources utilized by our 23.6%

organization; and enabling better Improve understanding of
regulatory environment

communication with stakeholders Obtain or be able to aggregate 12.2%

on our long-term vision and
additional data for reporting
purposes (e.g., operational or
governance data)

strategy which in turn generates 10%

greater trust.
Adopt Integrated reporting
(as dened by IIRC)

Badr Jafar, Chief Executive, Crescent Enterprises

Connected reporting Responding to complexity and rising stakeholder demands 27

Connected reporting would bring a range of benefits

High-growth companies
We compared companies that have seen EBITDA growth of compliance, efficiency of production, degree of integration, and
greater than 10% over the past 12 months with other companies speed of closing than their slower-growing peers.
in the survey. Rapid growth forces high-growth companies to
focus on efficiency of reporting. But they still need to improve But they recognize that they need to do more. High-growth
further. companies say that their current framework is too complex and
time-consuming, and that they need to improve their efficiency
Higher growth brings greater complexity, both operationally levels further. The challenges for high-growth companies when
(increase in the number of legal entities or business units, they seek to improve reporting, center on data, analytics
jurisdictions, products and services sold), and in reporting and IT systems. They admit they need to improve their data
(number of reporting standards, reports issued, time taken for and analytics. And they perceive the challenges to be a lack
reporting). Faced with these challenges, high-growth companies of integration between IT systems, the number of reporting
have gone further on efficiency of reporting. They say they systems, and a lack of automation across systems.
are more effective in areas including timeliness, cost, level of

Chart 15
Infographics for high-growth companies versus others on effectiveness
of reporting and the need to improve efficiency

Timeliness
90%
80%
Condence of the board Cost
70%
60%
50%
40%
30%

External stakeholders' view 20%

of reporting Level of compliance
10%
0%

Internal stakeholders' view Efciency of production

of reporting

Speed of closing Degree of integration

Over 10% increase 1% to 10% increase No change/decrease

28 Connected reporting Responding to complexity and rising stakeholder demands

 6 Conclusion
Corporate reporting is always changing.
Changes are driven by the ever-complex
global business environment; the increase
in data; the frequency of reporting; the
To be successful, efficient and effective in their reporting,
companies have a number of key priorities:
Introduce connected corporate reporting to allow the
provision of robust, consistent and timely data beyond the
statutory financial report.
Report in a manner that is well connected to strategic
type and depth of information required; messaging, ensuring that internal and external
communications are aligned, and that the delivery is
new reporting regulations; and the evolving effective, impactful and actionable.
purpose and need for the information. G
iven the complexity and volatility of the reporting
Internal and external drivers, which affect environment, and the demands that places on the finance
function, make the process as efficient and cost-effective
each other, are making reporting more as possible.
complex and subject to revision and change. All of this requires companies to take a broader, long-term view
of their reporting, in the context of the strategic priorities of the
firm, rather than just focus on compliance. This is likely to require
investment in improved data analytics and IT infrastructure,
optimization of business processes and executive focus.

Connected reporting Responding to complexity and rising stakeholder demands 29

EY | Assurance | Tax | Transactions | Advisory For more information, please contact:
About EY
EY is a global leader in assurance, tax, transaction and advisory Global and Europe, Middle East, India and Africa
services. The insights and quality services we deliver help build trust and Peter Wollmert
confidence in the capital markets and in economies the world over. We Financial Accounting Advisory Services (FAAS) Leader
develop outstanding leaders who team to deliver on our promises to all
Stuttgart, Germany
of our stakeholders. In so doing, we play a critical role in building a better peter.wollmert@de.ey.com
working world for our people, for our clients and for our communities. +49 711 9881 15532
EY refers to the global organization, and may refer to one or more, of Karsten Fser
the member firms of Ernst&Young Global Limited, each of which is a Financial Accounting Advisory Services (FAAS) Markets Leader
separate legal entity. Ernst&Young Global Limited, a UK company limited Stuttgart, Germany
by guarantee, does not provide services to clients. For more information karsten.fueser@de.ey.com
about our organization, please visit ey.com. +49 711 9881 14497
2014 EYGM Limited.
All Rights Reserved. Americas
EYG no. AU2818 Kenneth Marshall
Financial Accounting Advisory Services (FAAS) Leader
EMEIA Marketing Agency kenneth.marshall@ey.com
1001598 +1 212 773 2279
ED None

In line with EYs commitment to minimize its impact on the environment, this document
Asia-Pacific
has been printed on paper with a high recycled content.
Joon Arn Chiang
This material has been prepared for general informational purposes only and is not intended to Financial Accounting Advisory Services (FAAS) Leader
be relied upon as accounting, tax or other professional advice. Please refer to your advisors for joon-arn.chiang@sg.ey.com
specific advice.
+65 6309 6997
The views of third parties set out in this publication are not necessarily the views of the global EY
organization or its member firms. Moreover, they should be seen in the context of the time they
were made. Japan
ey.com Tomohiro Miyagawa
Financial Accounting Advisory Services (FAAS) Leader
miyagawa-tmhr@shinnihon.or.jp
+81 3 3503 1166