Methodology B lack Sun’s year-on-year benchmarking review of the FTSE 100 Annual Reports narrative, tracks trends and best practice in light of the evolving regulatory requirements and reporting landscape. Benchmarking approach Our review has been developed by Black Sun’s Research and Strategy Team, who have worked in conjunction with independent advisors, clients and regulatory bodies to identify what constitutes ‘best practice’ reporting within the remit of the regulatory guidelines. The focus of the review is on the narrative of the Annual Report, to assess how effectively companies have communicated information about their business to their stakeholders. Our evaluation does not cover the financial statements or notes and we do not use the study to evaluate the accuracy of the information, compliance with industry regulations, or financial performance. Sample group Our sample consisted of companies within the FTSE 100 as at 1 March 2011 and the sector analysis is based on the Financial Times FTSE sector indices. The Annual Reports which have been reviewed cover year endings between 1 January 2010 and 31 December 2010 and we assess them against over 240 data points year-on-year. Legislation & regulation A sample of some of the legislation, regulation and good practice standards which we have reviewed and used to formulate the criteria for our analysis are the Companies Act 2006, Combined Code and UK Corporate Governance Code, FRC’s Effective Company Stewardship consultation, Women on Boards consultation, BIS Review of Narrative Reporting and the Accounting Standards Boards Reporting Statement on the OFR. www.blacksunplc.com © Black Sun Plc 2011 35
