5 Guray Karacar - Transparency Disclosure mailing

The Impact of Recent Changes in
Corporate Narrative Non Financial Reporting
Güray Karacar
Some Observations on Annual Reporting and
Financial Reporting
• Financial statements are prepared in accordance with the
applicable set of accounting standards, and give a fair view of
the company’s consolidated assets, liabilities, financial position,
and profit or loss.
• Annual reports only contains periodical financial information
- No strategy
- No sincerity
- Only success stories and CSR related marketing activities
- No value for stakeholders
- Top management are not included to the process
Non Financial Reporting
The primary audience of non-financial reporting is the providers
of financial capital (investors), in order to help their capital
The expected outcome is;
• Better decision-making based on an understanding of, and
communication about, the full range of factors that materially
affect the ability of an organization to create value over time.
• More efficient capital allocation decisions that are more likely to
create short, medium and long-term value and to facilitate
better alignment of external reporting with internal decision
Business Model
The Impact
• More companies reporting on GRI and Integrated Reporting
• Top management and engineers are more involved
• Sustainability Indexes
• ETF’s and funds
• Greater demand from investors
• New tools to communicate with stakeholders
Closing thoughts
• The revision of the OECD Corporate Governance Principles is
an opportunity to promote reporting
• New tools needs to be developed to facilitate the use of reports
• Media training needed to educate more on the use of financial
and non financial reports
• Most of the changes occurred in response to regulation, new
legislations has to be in place
• Financial institutions do need to consider reports