OFRs fall by 21% as reports get longer

News Article - 16 October 2006
Category: Business

The length of annual reports compiled by companies has doubled over the last ten years, according to new findings.

Audit firm Deloitte found that business reports now contain around 85 pages - an increase of 40 pages on the average of 45 recorded in 1996.

However, the number of operating and financial reviews (OFR) has declined from 41 per cent to 20 per cent over the last year, the study also found.

Deloitte audit partner Isobel Sharp said: "The halving of the number of formal OFRs seems dramatic, but does not mean that the information content is reduced," AccountancyAge reports.

The lengthening of company reports is attributed by the firm to increased regulation, more focus on environmental and employee matters and international financial reporting standards (IFRS). According to Deloitte, companies are finding it difficult to cope with IFRS.

Ms Sharp said the businesses were carrying out reports minus the OFR title so that they did not have to follow a certain framework but were still considering matters regarding employees and the environment which usually have been included in an OFR.

The results follow a government decision to scrap the requirement for companies to generate official OFRs and instead produce general business reports.

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