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CFA Institute issues study on investor views on complexity in corporate financial reporting

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May 14, 2015

On May 14, 2015, the CFA Institute, a global association of investment professionals, has published “Addressing Financial Reporting Complexity: Investor Perspectives” featuring results of a member survey on the topic. The report analyzes what investors believe are unavoidable (transactional) and avoidable (accounting) sources of complexity and how current standard-setter initiatives should be refocused to eliminate avoidable complexity to increase transparency and bring about meaningful change.

The paper argues that the current dialogue focuses largely on preparers' concerns regarding financial reporting complexity and its associated compliance costs. The investors' perspectives would be missing in the debate. Main focus of the report is differential financial reporting.

The balance between the needs of companies to cut their compliance costs and the needs of investors to receive valuable, decision-useful information also formed part of the comprehensive review of the IFRS for SMEs and is also part of the discussions in the IASB's principles of disclosure project.

Please click to access the following information on the CFA Insitute's website:

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