Consistent and coherent

A company may identify relationships and linkages between its business model and other content elements. For instance, it could explain principal risks affecting a specific part of its business model using a relevant and consistent methodology.

   Key linkages

Effective linkages between pieces of information presented within the non-financial statement and other information disclosed in the management report could enhance the overall usefulness and relevance of information, and increase its cohesiveness. Ultimately, the management report should be viewed as a single, consistent set of information.

Key linkages are expected to be highlighted and explained, so that users of information can realise and understand the most relevant relationships and interdependencies of information disclosed in the management report.

Within the non-financial statement, contents are related to each other. Explaining these linkages is important so that companies provide a fair and comprehensive view of their development, performance, position and the impact of their activities. The non-financial statement should be, on its own, a balanced and coherent set of information.

The content of the non-financial report is expected to be coherent over time. This enables users of information to understand and compare past and present changes in the company development, position, performance and impact, and relate reliably to forward-looking information. For example, consistency in the choice and methodology of KPIs is very important for understandability and reliability (updates may be necessary, as KPIs may get obsolete or new and better methodologies improve the quality of information). In the case of changes in their reporting policy or methodology, companies are expected to explain them, their rationale and their effects (including, as appropriate, restatements of past information, showing clearly the effect of changing reporting policies or methodologies).