PricewaterhouseCoopers (PwC) Malaysia Wednesday launched its new reporting framework in its continuous efforts to raise the level of corporate reporting in Malaysian companies.
Leader of Assurance and Business Advisory Services of PwC Malaysia, Eric Ooi, said the framework's emphasis was on non-financial information such as details on research conducted and launch of new products in the financial accounts of companies.
“The framework would support requirements for greater disclosures in response to the call by investors for such information,” he said after the launch of PwC's Illustrative Annual Report here Wednesday.
The Illustrative Annual Report presents an example of an annual report of a fictitious company listed on the Main Board of the Kuala Lumpur Stock Exchange.
Ooi said these requirements for non-financial information had already been made mandatory in a few European countries.
“In UK, non-financial information has not been made mandatory but it has been recommended as best practices among companies,” he said.
Ooi pointed that based on study conducted by international research company, Standard & Poor's, share prices reflected the amount of information disclosed in financial reports.
“This is because investors generally will commit their funds based on their confidence in the management of any particular company,” he said further.
Leader of Corporate Reporting of PwC Malaysia, Loh Lay Choon said while there were better disclosures in financial reporting among Malaysian companies as compared to five years ago, the next challenge would be to incorporate information that would assist investors understand these companies businesses better.
“Among the informations of interest to investors are the reasons for losses in the particular business segment and how companies intend to turn that loss-making division,” Loh said.