Making financial reports less complex and more relevant
Jun 05, 2009
The Financial Reporting Council (FRC), the United Kingdom's independent financial reporting regulator, has published a discussion paper arising from its project on reducing complexity in corporate reporting.
- Cash flow and net debt reporting: could this be better aligned with user needs such as by including a net debt reconciliation?
- Wholly owned subsidiaries reporting requirements: could we find ways to reduce the reporting burden such as by reducing the filing or disclosure requirements?
- Cut clutter: could preparers reduce immaterial information (with the support of regulators) that may be undermining the quality of reports?
- Disclosures: could we overhaul the process for creating disclosures and provide guidance about when they can be deleted as not relevant?
- IFRSs: could we improve usability through logical organisation and clearer articulation of the desired outcomes for each standard?