Reporting

1. Financial reporting.

Collating and publishing financial information.

For example, through a company's annual report and accounts.

Limitations of general purpose financial reports

"... general purpose financial reports do not and cannot provide all of the information that existing and potential investors, lenders and other creditors need.

Those users need to consider pertinent information from other sources, for example, general economic conditions and expectations, political events and political climate, and industry and company outlooks."

IFRS - Conceptual Framework.

2. Law - regulation - conduct.

Disclosure to relevant authorities about alleged or suspected breaches of law, regulation, rules of conduct, or similar guidance.

3. Risk - risk management.

The communication of risk and risk management outcomes for the purposes of (i) comparing the results with the organisation's risk policy and (ii) the early identification of potential problems.

Scope of treasury reporting

"Treasury's most important function is that it is able to give the Treasury Committee, and senior stakeholders comfort via regular monthly reporting that Treasury is managing the company's exposures within the limits set by the Board.

Typically this will include the monitoring of headroom for going concern, to bank counterparty limits, and FX and interest rate hedging exposures, etc.

Other wider important reporting will be preparing annual debt covenant compliance certificates to external stakeholders who would typically include banks and credit rating agencies."

Tim Coope FCT, Head of Treasury, Interim, St James’s Place.

Don't put irrelevant numbers into reports

"Reporting should be purposeful. I always start designing of a report with a blank sheet of paper, divide it into squares and then write the questions I’m trying to answer in each square.

This avoids putting numbers in a report just because they are produced.

E.g. How is my liquidity going to change in the next 90 days? Key questions that each graph or table should tell the reader (1) What has changed? (2) Is it important? (3) Do I need to do anything?"

Robert Langley FCT, Director of Treasury Strategy, OSB Group.

Principles of reporting - BCBS

"The Basel Committee with the BCBS 239 standards defined the most important principles of reporting that any bank or non-financial corporate should follow.

In summary, it highlighted the importance of a thorough end to end process that included governance and infrastructure.

It presented the risk aggregating capabilities key values (accuracy and integrity, completeness, timeliness and adaptability) and outlined the principles of reporting practices (accuracy, comprehensiveness, clarity and usefulness, frequency and distribution)."

Dimitris Papathanasiou CFA, Treasury and Risk executive.

High quality data makes reporting tick

"I’m talking a lot with clients on the importance of data quality, and the fact that data is the commodity that makes systems and reporting tick.

Essentially an update on the 'garbage in, garbage out' philosophy. Treasury needs finance data and when different systems are used, you not only need to get them communicating in sync (and at the right refresh rate) but also be wary of duplicating data unnecessarily.

Start with the outcome in mind - high transaction volumes may be necessary to drill back in some cases (for example cash forecasting variances) but completely unnecessary in others - meaning you can aggregate certain sources, for example risk exposures.

It all contributes to a holistic reporting environment (understanding things) that can be managed separately from the operational treasury environment (doing things)."

Carl Sharman, Partner, Deloitte.

4. Information services - journalism - financial journalism.

In information services and journalism, reporting includes investigating, witnessing and verifying facts, as well as their selection, interpretation and presentation.

Providers of financial information include Bloomberg, IDC and Reuters.

5.

More broadly, collating and publishing any significant information.

For example, information relating to corporate social responsibility, including carbon reporting.

6.

More broadly still, any structured or unstructured communication about facts or alleged facts.

Reporting for value creation

"Many treasurers and ACT members will be reporting to boards that are controlled or influenced by a PE investor. PE investors will have a clear investment case on how they intend to create value during their anticipated ownership, which will typically be for four to seven years.

The PE investor will aim to create value via various levers, which could include:

• Driving international growth through acquisitions

• Generating operational improvements in all areas of the business, for example, sales effectiveness, cost efficiency, controls and reporting..."

Ian Cooper AMCT, Group Treasurer, 3i Group plc.

Risk assurance

"Reflecting back, it would have been useful to survey all interested parties to understand precisely what their priorities were.

Add to this any other metrics for effective treasury reporting.

Ultimately, it's about giving assurance whether we are on track versus defined risk appetite parameters."

Raj Gandhi FCT, former group treasurer and CFO.

And then what?

"The key question to ask for every report produced is: “… and then what?”

This question should be used as the filter for the efficacy and usefulness of the report produced.

If there are no good answers as to how the report will be used to make an impact, drive decisions, or shape specific outcomes - one should really change or drop it, and save time and effort."

Andre Khor FCT, Chief Financial Officer, Chandra Asri Group.

Advance the profession by sharing your story

"While there are many ‘traditional’ ways to consider reporting within the treasury function, it’s also important to think outside the box.

Increasingly, this means looking beyond pure financial reporting to include non-financial areas such as ESG and DEI.

Since reporting is about the provision (and consumption) of reliable business information, the concept also includes the sharing of treasury best practice and innovation.

This might be via treasury associations, conferences, webinars, podcasts, magazine articles, and more.

In fact, reporting on successes (and failures) is vital to the ongoing education of the treasury community.

As such, if you ever have the opportunity to share your story with other treasury professionals, consider it not only as an act of reporting with accuracy and balance around your project or career, but also of advancing the profession."

Eleanor Hill, Founder, The Treasury Storyteller.

See also

• Annual report
• Assurance
• Audit report
• Auditors’ report
• Basel Committee on Banking Supervision (BCBS)
• BCBS 239 Standard
• Best practice
• Bloomberg
• Boilerplate
• Breach
• Carbon reporting
• CbC reporting
• Central bank reporting
• Code
• Competence
• Compliance
• Conceptual framework
• Conduct
• Contract
• Corporate social responsibility (CSR)
• Corporate Sustainability Reporting Directive
• Data
• DEI
• Directive
• Directors report
• Disclosure
• Dual reporting
• Enforcement
• Environmental, social and governance (ESG)
• Ethics
• European Financial Reporting Advisory Group (EFRAG)
• European Sustainability Reporting Standards
• Extensible business reporting language
• Financial reporting
• Financial Reporting Standard
• Financial Stability Report
• Framework
• Gap report
• General purpose financial reports
• Global GHG Accounting and Reporting Standard for the Financial Industry
• Global Reporting Initiative
• Global Sustainable Development Report
• Good practice
• Governance
• Guidance
• Human resources
• IDC
• Impact reporting
• Infrastructure
• Integrated reporting
• Integrated Reporting Framework
• Interest rate gap report
• Interim financial report
• International Financial Reporting Standards (IFRS)
• International Integrated Reporting Council
• Jurisdiction
• Law
• Legislation
• Line manager
• Malfeasance
• Minimum standards of the Lamfalussy Report
• Mismatch report
• Monetary Policy Report
• Multibank reporting
• Non-Financial Reporting Directive
• Payment practices reporting
• Principle
• Private equity (PE)
• Qualified audit report
• Red tape
• Refresh rate
• Regime
• Regulation
• Report
• Report card
• Report and accounts
• Reported earnings
• Reporting entity
• Reporting line
• Reputational risk
• Reuters
• Risk
• Risk appetite
• Risk management
• Risk management reporting
• Risk reporting
• Rules
• Scope 3 reporting
• Segregation of duties
• SOC 1 report
• SOC 2 report
• Stakeholder
• Standards
• Strategic Report
• Streamlined Energy and Carbon Reporting (SECR)
• Supervision
• Sustainability reporting
• Variance
• Tax
• The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022
• 360 degree feedback
• Treasury
• Unqualified audit report
• Value Reporting Foundation
• Whistle-blowing

Other resource

• Basel Committee on Banking Supervision - Principles for effective risk data aggregation and risk reporting - January 2013