The International Accounting Standards Board (IASB) released highlights of a recent survey on financial information disclosures, ahead of its public discussion forum on ‘Disclosures in Financial Reporting’, and said respondents had identified various factors contributing to the disclosure problem.
The IASB received 225 responses from respondents across Africa, Asia, Europe and North America. Around 50% of responses came from financial statement preparers and around 20% came from users.
Highlights of the survey include:
- Over 80% of respondents agreed that improvements could be made to the way financial information is disclosed. Half of those respondents felt that such improvements were required across all parts of the annual report, and not just the financial statements.
- Most preparers of financial statements identified the primary problem as disclosure requirements being too extensive with not enough being done to exclude immaterial information; which has been referred to as disclosure overload.
- Many users of financial statements felt that preparers could do more to improve the communication of relevant information within the financial statements, rather than leaving users to sift through large amounts of data.
- A range of views on the underlying causes of the problem was identified. Some respondents felt that more could be done to improve the way in which accounting standards are set out. Others expressed concerns that preparers, auditors and regulators are approaching financial reporting as an exercise in compliance rather than as a means of communication.
Hans Hoogervorst, chairman of the IASB, said that feedback from the survey indicated a need for standard-setters, auditors, preparers, regulators and investors to work together in order to deliver vital improvements to all disclosures, not just those contained within the financial statements. “Our discussion forum on disclosures next week is the first step on that journey,” he added
The IASB Disclosure Forum will take place in London on 28 January. The event is open to the public and will also be webcast.
Sibos 2017 Day Two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more