Effective on-line reporting: CAs and investor relations officers team up to provide advice

TORONTO - A new publication offers guidance to assist companies in developing effective investor relations sections for their web sites.

The Discussion Brief titled "Financial and Business Reporting on the Internet" is a joint publication from the Canadian Institute of Chartered Accountants (CICA) and the Canadian Investor Relations Institute (CIRI). Preparation of the document drew upon the web-reporting practices of leading companies that participated in the CICA's annual Corporate Reporting Awards. It offers practical guidance for the content and organization of an on-line investor relations section.

"The internet has become widely acknowledged as a key medium for communicating business and financial information," said Chris Hicks, Principal, Knowledge Development with the CICA. "The internet offers a clear opportunity for companies to enhance their reporting to investors and other stakeholders. A well-planned and managed investor relations section of a web site can play a key role in communicating a company's value proposition for investors."

Investors, analysts and others have become accustomed to using company web sites to obtain the information they need. Business and financial reporting information contained on a web site must be relevant, current, complete, clear and well-organized.

"Any site should contain a sufficient overview and enough strategic information to provide a reason to invest in the company," said Ian Bacque, President & CEO of CIRI. "Content should include actual financial performance, important transactions, and any difficulties the company faces. It should also be forward-looking, showing a growth strategy and what the future holds for the industry and the company."

Developing a useful on-line investor relations section involves giving careful thought in how to effectively present information for an on-line audience. Users must be able to find the information they want with as few clicks as possible.

The CICA added electronic disclosure to the judging mix for its Corporate Reporting Awards in 2001. It was an evolving area of corporate reporting at the time and is now commonplace. CIRI is one of the judging groups for the awards.

The Discussion Brief can be found on the web sites of the CICA (www.cica.ca) and the CIRI (www.ciri.org).

Special Note:

The Canadian Investor Relations Institute is hosting a webinar on the highlights of the Discussion Brief on Wednesday, April 30 at 12 Noon (Eastern Time). To register please visit www.ciri.org.