As the global economy continues to reform its financial system, one crucial element of reconstruction is being ignored. The corporate reporting model in its current form does not meet the needs of investors – and it’s becoming increasingly difficult for the model to meet the requirements of preparers, auditors, regulators and standard-setters. Now is the time to begin a wide-ranging debate about what is wrong with the current model and how to change it.
The report contains the views of influential figures from key different vantage points in the financial chain – preparers, users, standard-setters, regulators and auditors – on the changes required to the traditional corporate reporting model, which no longer meets the needs of investors and other stakeholders.
Common themes in the interviews include:
The report interviewees include senior executives from companies such as Standard & Poor's, HSBC and SAP, as well as leading figures from the International Integrated Reporting Council (IIRC), International Accounting Standards Board (IASB), Financial Reporting Council (FRC) and other organizations.
All agreed on the need for change, but they did not concur on how far-reaching the reforms had to be or what should be altered.