CFA Institute surveys quality of financial reporting

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02 Feb 2005

The quality of corporate information disclosed by listed companies in the Asia-Pacific region is improving, according to a survey of portfolio managers, investment analysts, credit analysts, and investment advisors conduct by the CFA Institute.

Most respondents rated the overall quality of disclosure as either 'average' (49%) or 'good' (35%). 84% of the respondents thought that the quality of disclosed information in the region had improved either 'a lot' or 'some' during the past three years. 75% felt that regulators should mandate quarterly reporting throughout the region.

The 10 areas of disclosure ranked as most important to the responding analysts are:

  • Off-balance sheet assets or liabilities
  • Unusual, non-recurring charges
  • Forward-looking projections, forecasts
  • Risk factors, sensitivity of assumptions
  • Capitalised vs. expensed costs
  • Accounting principles applied,
  • Including effects of changes
  • Revenue recognition criteria
  • Related party transactions or special purpose entities
  • Contingencies, including litigation
  • Fair values of assets, liabilities

Click to download (posted with permission of CFA Institute):

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