How could companies in the Retail & Consumer sector improve their disclosures?

Investor View ()

Non-GAAP disclosures

Investors tell us that they would like assurance on a number of non-GAAP disclosures. They say there is not enough disclosure on how non-GAAP numbers are calculated, so they can’t tell if they have been presented consistently both year-on-year and also between companies.

Cost of goods sold

Investors say there is insufficient detail around the composition of cost of goods sold (COGS). Investors would like a break-down of those costs to be able to compare the constituent costs year-on-year and also perform comparisons across peer groups. These numbers could be considered sensitive, so this may require consensus across the sector, but management could consider the potential benefits of the transparency this would provide the investment community.