PwC Releases Publication on Corporate Reporting

Thursday, 2 June 2005

PwC Releases Publication on Trends in Corporate Reporting

Accolades for The Warehouse, Westpac and Watercare

PricewaterhouseCoopers today announced that three companies doing business in New Zealand had been accepted into the 2005 edition of the firm’s publication saluting “best practice” in corporate reporting.

The Warehouse, Westpac and Watercare Services have all received accolades for their corporate reporting, with elements of their reports included as case studies in this year’s edition of the publication, Trends 2005: Good Practices in Corporate Reporting. The publication is distributed throughout PricewaterhouseCoopers’ network of more than 140 member firms around the world.

It is the sixth year that PricewaterhouseCoopers has produced the publication which is a comprehensive “how to” guide for companies seeking guidelines for linking financial and non-financial reporting. Examples of best practice are drawn from nominated companies across 42 countries, outlining the reporting of those entities that are embracing the demands for greater transparency.

Andy Britton, the Value Reporting lead partner for PricewaterhouseCoopers in New Zealand, said there is an international shift to provide the marketplace with more contextual and non-financial information.

“Stakeholders are increasingly after information which is more meaningful than just an array of numbers and notes to the accounts,” he said. “If you’re an investor then what you want is information demonstrating that the company you’re putting your money into understands the link between what drives value in the business, its strategy, and performance. In particular, investors wanted information on the performance of intangible assets such as innovation, brand, reputation, people, and supply chain.”

Andy Britton also said that the catalyst for the push for increased clarity in corporate reporting was not merely a “nice” idea.

“There is ample evidence that those companies who can meet and exceed the reporting expectations of their stakeholders will secure a competitive advantage”, he said. “They might reduce their cost of capital when seeking funding from their bank, and stakeholders are more likely to deliver long-term support to companies that provide them with the best information.”

In terms of the New Zealand examples, The Warehouse scored well for its reporting of customer analysis and segmental performance; Westpac was praised for its strength in the area of communicating its strategy to shareholders, and reporting on customer satisfaction and employee retention; and Watercare Services received accolades for its reporting of how it manages its physical assets.

ENDS

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