• Register
Return to: Home > News > Standards > Investors have mixed views on HSBC’s market risk disclosure changes

Investors have mixed views on HSBC’s market risk disclosure changes

As part of the UK Financial Reporting Council's Financial Reporting Lab (FRL) a group of investors reviewing the changes to risk disclosure reporting by HSBC found mixed views on the changes applied.

The FRL report, Presentation of market risk disclosures, is based on HSBC's decision to change its risk disclosure presentation in the beginning of 2011.

This HSBC risk disclosure presentation moved recurring information into the appendix following the primary risk disclosure that focused on current period results and dynamic risk trends.

Half of the investors looking at the reporting changes made by HSBC said that the new way of risk reporting improved presentation and the other haft said it did not enhanced nor hindered the clarity and usability of the risk section of the annual report.

Regarding the content of risk disclosures, the investors stated the importance of tailoring the disclosures to fit the size and nature of a given bank's risks as well as the importance of being current and relevant concerning underlying risks and responses to key market events.

"The Lab is exploring various themes in reporting, including how to make relevant information more accessible, and the potential for reducing 'clutter'," FRL director Sue Harding explained.

"Investors welcome a focus on reducing the volume and complexity of reporting, while still conveying information proportionate to the underlying exposures," she said.

The FRL's review was carried out by 15 investors from seven institutions.

Related links

The Financial Reporting Council

Financial Reporting Lab project report: Presentation of market risk disclosures

Top Content

    HONG KONG NATIONALS: UNDERSTANDING VISA AND TAX WHEN MOVING TO THE UK

    Over 2 million Hong Kongers learned recently that they may soon be offered a route to UK citizenship following China’s introduction at the end of June of its controversial Security Law in the territory.

    read more

    SASB IMPLEMENTATION SERIES: COMMUNICATING ESG TO MAINSTREAM INVESTORS

    As part of a series of webinars, the Sustainability Accounting Standards Board (SASB) took a closer look at how to communicate ESG initiatives and progress to mainstream investors

    read more

    REPORTING AND COMPLIANCE: WHY WE NEED A DATA REVOLUTION

    Commerce no longer adheres to national boundaries: the largest international organisations to the smallest businesses operate in a global market. However, rules for corporate reporting and compliance do adhere to borders, write IMA’s Jeff Thomson and Liv A Watson

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.