Good financial reporting raises shareholder value
02 Sep 2007
The Association of Chartered Certified Accountants (ACCA) in collaboration with CFO Asia Research Services has published the report of a survey of business opinion in Asia Pacific on the impact of regulation on companies and their shareholders.
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A key finding was that "three types of rules – financial reporting standards, tax regulations, and stock exchange regulations – are viewed as the most helpful in creating shareholder value". The study also found that "regulations create a level playing field for businesses, but only when they are mandatory and enforced consistently". "Some areas of regulation and disclosure are believed to be more beneficial than others. The introduction of IFRSs has been seen widely as a success story, adding value to the Asian capital markets by creating easy comparability for Western investors and by allowing a flexible, principles-based approach. The downsides reported were unsuitability to small enterprises and a lack of local context for countries such as China." |
