ACCA Strategic Professional · Advanced Performance Management · Management reports
Orlanda Energy publishes an integrated report for investors and a separate internal scorecard for operations managers. The sustainability director wants to include a metric showing carbon emissions per unit of output in the investor report only because it is easy to quantify, while omitting a significant spill incident that was hard to quantify. Which is the strongest objection?
The report would be unbalanced and incomplete, omitting a material spill because it is hard to quantify. Stakeholders need material information, including qualitative matters, to assess performance. Selective reporting undermines trust, even though internal and external reports may differ in content.
- AThe report would fail to be balanced and complete for investors, so material information would be omitted, undermining trust and the user's ability to assess performanceCorrect
- BInvestors are not interested in environmental information of any kind
- CInternal and external reports must always contain identical metrics
- DHard-to-quantify items must never be reported in any form
Explanation
Reports for external stakeholders should be balanced and include material matters, whether or not easily quantified. Omitting a significant incident misleads users. Internal and external reports may legitimately differ, and qualitative disclosure is acceptable.
Did you get it right without looking?
One question tells you little. A timed set on Management reports shows your real accuracy, how long you take and where you lose marks.
More Management reports questions
- Zentra Foods plc reports to its board, to institutional investors and to the regional managers who run its stores. The finance director prop…
- Wexmoor Telecom has a model that identifies customers likely to cancel. The data team reports that customers who contacted the call centre t…
- Anselm Co is preparing an integrated management report for its board. Which of the following inclusions would most improve the report's abil…
- Brindle Foods' production director receives a report showing total factory overheads allocated from head office, including costs she cannot …
- Zentra Hotels' board pack for its regional managers contains only monthly revenue, operating profit and ROCE for each hotel. The new finance…
- Brandt Airlines wants to improve its management reports using a live dashboard fed by operational data. Management is concerned that the das…