Translation. Region: Russian Federation –
Source: Central Bank of Russia
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The Bank of Russia intends to enhance the appeal of public issuers' annual reports by establishing uniform rules for their preparation and maximizing their content with useful information for investors. The regulator's initiatives are reflected in in the report following the public discussion of the report "On the optimization of forms of disclosure of periodic information".
First and foremost, it is planned to establish requirements for the structure and content of a company's main document. In it, issuers will discuss not only their current activities but also their future plans. The document will include a chapter on corporate governance, as well as how the company complies with the principles and recommendations of the Corporate Governance Code. Issuers whose securities are included in level one or two quotation lists will disclose information on their commitment to sustainable development goals.
Static information from companies' 6- and 12-month financial statements will migrate to the annual report. For example, general information about operations, the composition of management bodies, information about controlled organizations, shareholders, and more. Issuers will be able to report operational changes through the disclosure of material facts. This will reduce the volume of periodic publications. Furthermore, the timeframe for issuing financial statements will be shortened.
In the near future, the Bank of Russia intends to begin work on digitalizing corporate reporting, which will subsequently reduce the costs of its preparation and disclosure.
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