Watch your KPIs as new law starts to bite

摘要

The Operating and Financial Review (OFR) has become a legal requirement for all UK quoted companies for financial years beginning on or after 1 April 2005. This landmark legislation is the first time that organisations are required to report on non-financial elements that contribute towards performance. Directors are required to provide both current and future strategies to be adopted by the business. The aim is to help investors assess the potential for these strategies to succeed. The OFR identifies trends and factors relevant to the investors' assessment of the current and future performance of the business and the progress towards the achievement of business objectives.