Investment management and real estate businesses have built up strong relationships with analysts and investors. As our value reporting survey demonstrates, however, there is room to improve communication and demonstrate the strengths and prospects more effectively to investors and the markets.
The advent of International Financial Reporting Standards (IFRS) could provide a catalyst for more open, informative and market-consistent disclosure. However, the fair valuation of assets could lead to potential earnings volatility. The resulting uncertainty could be compounded by differences in the definition and application of fair value. Any changes or discrepancies need to be reconciled and carefully explained to analysts and investors. Failure to do so satisfactorily could be penalised with a risk premium or higher cost of capital.
PricewaterhouseCoopers can help investment management and real estate businesses to implement new reporting standards and meet stakeholder demands for more credible and transparent disclosure.
