Small firms take on the big boys
THE AIM OF the Best Annual Reports Awards, according to competition organiser the Hong Kong Management Association, is to encourage reporting that is 'accurate, informative, well presented and timely'.
Last year's competition attracted 87 entries - 64 in the General Category and 23 in the Non-Profit-Making and Charitable Organisation Category. Entries included reports from the 33 constituents of the Hang Seng Index (HSI). Eleven HSI companies that had not voluntarily submitted entries were also included, making an overall total of 98 reports last year.
'Of the universe of companies the number is quite small, but on the whole we are getting the cream of the crop,' said Howard Gorges, chairman of the nine-member panel of adjudicators who will choose the winners.
Any company or organisation listed in Hong Kong, or has Hong Kong as its principal place of business, is eligible to enter. Financial reports must be based on international/Hong Kong accounting standards.
Judging criteria in the General Category include conformity with the accounting standards of the Hong Kong Institute of Certified Public Accountants/International Accounting Standards, the requirements of the Hong Kong stock exchange and the Companies' Ordinance.
General presentation, understandability, management discussion and analysis, employee relations and promptness of reporting are some of the other considerations.
Non-profit and charitable organisations are assessed on their general presentation of balance sheets, the clarity of the report, the design and layout, information relating to corporate governance, the organisation's stated purpose and the promptness in reporting.
Past winners include HSBC Holdings, MTR Corporation, CLP Holdings and First Pacific.
Large companies tend to do well because of the resources they have, but smaller firms should not be discouraged by that, Mr Gorges said.
'Small companies occasionally get near the top. We try to pick out a cross-section of companies. The idea is to encourage and improve overall standards.'
Companies in the mainland were also improving fast.
'Mainland companies have to go through a tough exercise to get listed, so they have quite a good base for a good annual report,' he said.
The overall winner is presented with the Best Report Award.
Other prizes include one gold, two silver and three bronze prizes in the General Category, and one gold, one silver and one bronze prize in the Non-Profit-Making and Charitable Organisations Category.
