UK firms still need to do more when it comes to the issue of narrative reporting, according to a new study.
The Accounting Standards Board (ASB) has examined the narrative reports of 50 UK listed firms for 2008 and 2009 and concluded that while most companies provided good content, there are still some problem areas.
According to the ASB, although two-thirds of the sample was "technically compliant" when reporting principles risks, the companies should have made more of an effort to meet the spirit of the requirements.
Ian Mackintosh, chairman of the ASB, said: "A number of companies resorted to simply providing descriptions of generic risks that could be easily cut-and-pasted into many other FTSE annual reports."
The ASB also pointed out that the best narrative reports included a business model disclosure section and that publishing such information could improve disclosure in other areas.
Earlier this month, Deloitte's examination of narrative reports in the UK found that the recession has had an effect on their content.
It revealed that the number of firms including information on capital structure, financing and liquidity in their narrative reports doubled between 2008 and 2009.
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