On 24 November 2015, the FRC's Financial Reporting Lab published a project report on the policy and practice in relation to disclosure about dividends which sets out the findings from its discussions with investors.
The report states that investors want information on:
- Why the company's dividend policy was selected;
- What the policy means in practice;
- What the risks and constraints associated with the policy are; and
- How the policy is delivered in practice.
The report also makes clear that investors are also seeking disclosure of the circumstances in which companies expect to pay special dividends or buy back shares and whether they are in the best interests of the shareholders.
The report can be found at:
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