The government’s plans to simplify corporate reporting, due for publication by the end of this month, are due to be met with some reservations by corporations.

In a survey of 100 PLC representatives by corporate reporting specialist Black Sun, there was unanimous agreement on the need for change in the role of the corporate report in communications. But 56% of the respondents said that the government’s consultation will not improve engagement with shareholders through reporting.

Moreover, 46% think that the proposals will make reporting more expensive. Although there is strong willingness to improve the quality of reporting – and steps have been taken to do so already, particularly in the governance and transparency of risk – the doubt over how the government’s plans will work has led to PLCs looking to the effectiveness of their own reporting.

Charles Tilley, CEO of the Chartered Institute of Management Accountants, was the keynote speaker at Black Sun’s annual corporate reporting summit where the survey was undertaken. Tilley warns that “no new model for corporate reporting is going to emerge overnight”.

“Good reporting is an opportunity for a business to tell its story and engage with its stakeholders,” says Sallie Pilot, director of research at Black Sun, “but as with any changes in legislation there is understandably some trepidation among corporate as to what the government’s proposals will mean in practice. The quality of the content for narrative reporting is, in our view, primary, and that is what companies should continue to focus on in order to build greater trust and confidence with investors.”