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SEC to make U.S. financial reporting system more user-friendly for investors
Securities and Exchange Commission Chairman Christopher Cox has announced the establishment of an advisory committee that will examine the U.S. financial reporting system. Recommendations will be made to the Commission by the committee on how to make financial reports clearer and more beneficial to investors, reduce costs and unnecessary burdens for preparers, and better utilise advances in technology to enhance all aspects of financial reporting.
IASB Management Commentary back on the agenda
The International Accounting Standards Board's (IASB) 'Management Commentary' project may return to the Board's active agenda because stakeholder comments on the discussion paper were extremely supportive. Over 90% of those who submitted comments to the Board agreed that management commentary (narrative reporting) is an integral part of financial reports.
EU Modernisation Directive
Among other things the aim of the EU Modernisation Directive was to encourage consistency across member states in the level of narrative reporting presented in the annual report.
Member states were required to implement the Directive by 1 January 2005.
IASB Management Commentary discussion paper
In November 2005 the International Accounting Standards Board published a Discussion Paper to contribute to the debate on Management Commentary and to seek views on the topic from interested parties.
Breaking the short-term cycle: A Chartered Financial Analyst/Business roundtable paper
The Chartered Financial Analyst Institute (CFA) Centre for Financial Market Integrity and the Business Roundtable Institute for Corporate Ethics held a series of symposia through 2005 and 2006 addressing the issue of short-term thinking in today's financial markets. This report and the proposals it contains reflect the opinions of panel participants in these meetings. Participants included corporate leaders, asset managers, institutional investors, and analysts.
EU Transparency Directive
The aim of this Directive is to enhance transparency on European Union (EU) capital markets by establishing rules for the disclosure of periodic financial reports for companies whose securities are admitted to trading on a regulated market in the EU.
The Directive must be implemented into national law by all Member States no later than 20 January 2007.
Corporate reporting: a time for reflection
Primary communications of financial condition and performance from large companies typically include both financial statements and narrative discussion. But what do the narratives actually communicate? Are companies meeting the information needs of investors — a priority audience for these strategic communications? These, in broad terms, are the questions asked and answered in a new PricewaterhouseCoopers survey of the narrative reporting practices of the world's largest companies, the Fortune Global 500.
Measuring assets and liabilities: investment professionals' views
How do investment professionals use the balance sheet? How do they want assets and liabilities to be measured? This publication offers the thoughts from participants in the major global capital markets.
The Business Review and AIM
The report 'The Business Review and AIM' reviews how companies on the UK Alternative Investment Market (AIM), for whom the Business Review is now mandatory, have been complying with the legislation. The UK Business Review requirements for AIM companies are largely a direct copy of the EU Accounts Modernisation Directive.
The Report looks at the quality of narrative reporting in their annual reports both before and after the Business Review came into effect and highlights areas where AIM companies could be looking to improve and strengthen their Review.
Survey: Presentation of income under IFRS
Results of PricewaterhouseCoopers research into the use and presentation of non-GAAP measures in 2,800 financial statements across Europe. It shows whether practices changed significantly with the move to IFRS as well as territory/industry trends.
Show me more than the money: an assessment of how prepared companies are for the business review
With the requirements of the original business review regulations and best practice recommendations from the Accounting Standards Board's (ASB) Reporting Statement: Operating and Financial Review as a guide, PwC looked at a random sample of annual reports of over 120 quoted companies. Our objective was to understand if, and how, the new business review requirements and recommendations have impacted company reporting.
Final shape of the Business Review
The Companies Act 2006 introduced enhanced Business Review requirements for quoted companies applicable for financial years beginning on, of after, 1 October 2007.With the passing of the Companies Act, the overall requirements of the Business Review have now become clear and we're finally in a position to examine the final shape of the legislation and the similarities and differences between the Operating and Financial review and the Business Review.
Report Leadership newsletter
This first update on the Report Leadership initiative shares some of the developments since its launch and provides some best practice examples from recent annual reports.
Report Leadership
Report Leadership, a multi-stakeholder group, aims to challenge established thinking on corporate reporting. The contributors to this initiative are the Chartered Institute of Management Accountants (CIMA), PricewaterhouseCoopers LLP, Radley Yeldar and Tomkins plc. Launched in November 2006, the group's first publication develops simple, practical ways to improve narrative and financial reporting based on feedback from investors.
The Transparency Directive: periodic reporting requirements
This short publication provides pragmatic guidance for UK listed companies required to implement the EU's new Transparency Directive rules relating to periodic reporting requirements. The publication addresses key questions such as:
- What are the new reporting deadlines?
- What are the requirements relating to 'quarterly reporting'?
- What content might be contained in a typical 'quarterly report'?
- How can directors address the requirements to provide responsibility statements?
- What should the narrative report accompanying the half-yearly financial statements contain?