1. Insight from the Lab
July 2014
 The Lab and its purpose
 Structure of the Lab
 Lab’s digital project
 What retail investors think about channels
 Other projects
Agenda

2. Lab purpose
 Launched in October 2011, the Lab’s aim is to help improve the effectiveness
of corporate reporting.
 The following distinguishes its activities:
• Providing a safe environment for companies and investors to work on
disclosure issues that they want to improve.
• Taking a collaborative approach so that reporting better meets the
needs of companies and the investment community.
• Facilitating discussions rather than producing requirements.
• Testing existing disclosure, or new versions developed, to identify best
practice / characteristics that represent practical improvements.
• Sharing widely, through published reports, insight on approaches
favoured by companies and investors, often using real examples.
2

3. Lab structure
Sue Harding
Director of the Lab
Carl Renner
Project Director
Thomas Toomse-Smith
Project Director
Steering Group (advisory)
FRC: Chief Executive (SG Chair), Accounting
Council Chair, FRRP Deputy Chair
Companies: large and smaller listed
Investors
Company advisors: design, broker, legal
Audit firms: large and mid
Government: BIS
Institutes: ICAEW, CIMA
Academia:
FRC
3

4. Lab’s digital project
A two year project which is designed to answer some key questions:
Digital Present: Corporate reporting through digital media
 How are companies currently using digital media in external corporate reporting?
 How are investors using the digital media reporting produced by companies?
 What approaches to digital media might provide the most benefit to investors?
 Where should companies focus their attention?
Digital Challenges: Barriers to the use of digital media in corporate reporting
 What barriers are there for companies and investors in making the most of digital
media for external corporate reporting?
 How would the regulatory regime need to change to support companies and
investors in the use of digital media?
Digital Future: Making the most of the digital opportunity
 How might companies use digital media and technology for external corporate
reporting in the future?
 How will investors use technology to consume information in the future?
4

5. What retail investors think about channels
The Lab conducted a survey with retail investors, we received over
150 responses.
When looking for information on a company’s performance,
which are the most useful channels? (out of 5)
Hard
Copy
3.83
Press
release
3.72
Print
news
3.59
Prelim /
analyst
pack
3.56
Website
3.44
Present
ations
3.32
Social
Media
1.56
Which shows that retail investors are already living in a multi-channel world,
although social media still has a lot to prove.
5

6. What retail investors think about channels
Which of the following features from an investors section of
website do you use?
Least popular
1. Mobile – 76% never use
2. Apps – 74% never use
3. RSS – 68% never use
4. Create accounts / download – 65% never use
5. Chart generator – 60% never use
Most popular
1. Company presentations– 75% always or sometimes use
2. Investor calendar – 69% always or sometimes use
3. Email news alert – 61% always or sometimes use
4. Company video – 50% always or sometimes use
5. Excel downloads – 37% always or sometimes use
6

7. Lab’s other projects
 Towards clear and concise reporting: A thematic review of how companies
have improved the quality of accounts through the 2012 and 2013 reporting
cycles.
 Case Studies: The Lab is approaching companies with a view to developing
case studies illustrating different approaches taken already or that companies
are planning to make their accounts clear and concise.
 Accounting Policies: This project looks at investors views on contents and
location of accounting policies and considers approaches to integration of
financial review information with the financial statements. It is due to be
released within the next two weeks.
 Dividend Policy and Disclosure: This project looks at what investors want
from companies in regards to disclosure of dividend policy and process. It is
due to be released before the year end.
7

8. Find all the Lab’s reports
and updates on current
activities through its web
page:
https://frc.org.uk/lab
You can also follow us on Twitter @FRCnews or on LinkedInin