“Annual reports are not a lark; they are information.” That is the motto of professor Lélio Lauretti, who for the past 30 years has been analyzing annual reports issued by Brazilian businesses. In the past decade, he has noticed considerable improvements to the contents of these materials. Ten years ago, the current director of the Brazilian Association of Public Companies (Abrasca) convinced the institution of the benefits that an award for best annual reports could bring to the market. Thus appeared Abrasca’s Annual Report Award, which, in its creator’s opinion, is the major factor responsible for the improved quality of these materials.

This progress can be measured arithmetically, starting from the cut-off point used by the judging commission. In 2008, the minimum acceptable score was 95, versus 90 in the previous year and 85 in 2006. This year, the maximum score was 102 points and, among public companies, Itautec was the one who came closest — 101.67 points.

According to the director, the institution scores well based on the extension and amount of detail in the information disclosed in their report; and it was this twosome that improved the most in such reports in general.

Honorable mentions were created in 2008 to emphasize the competition’s educational character. Companies that achieved top scores from all jurors in any analyzed requirement received an honorable mention. In economic-financial analysis, for instance, the spotlight went to Bradesco. “Banks use a series of indicators that are only absorbed by the reader if a lot of detail is provided. Bradesco did it and received an honorable mention.” In corporate governance, honorable mention went to Tractebel Energia.

Like the cut-off score, the number of companies that participate has also risen every year. While the first contest received 50 reports, this year the jurors analyzed 90 different documents. There has been undeniable progress, and Lauretti is already considering leaving the head of the judging commission. “I would like to pass the baton. I’ve done my part.” (Marcelo Loureiro)