07 November 2017

ACCA: New paper helps directors understand financial reporting obligations

A new guidance paper has been released as a joint publication of Chartered Accountants Australia and New Zealand (CA ANZ) and ACCA to help directors working across the Asia-Pacific and Europe better understand and meet their obligations when it comes to financial reporting.

Liz Stamford, CA ANZ’s General Manager, Policy, said it was an extremely important tool for directors working across the Asia-Pacific and Europe. 

“Directors have a number of requirements. First and foremost, they have a duty of care and must give clear information about financial statements to investors and others,” Stamford said. 

“This paper is an easy to follow guide which helps answer a range of questions, including, who is responsible for reporting? What are those responsibilities? And when and how do you discharge those responsibilities?

“Our paper outlines what the duty of care means in practice, what’s needed in terms of keeping records, and the various responsibilities in line with preparing financial statements. 

“We’re also looking at what must be done in terms of auditing those statements and providing guidance for overseeing internal controls.

“Directors have their own responsibilities and their own member bodies, but as this paper shows, we are playing a leading role in working with them so they better understand their requirements.”

Maggie McGhee, director of Professional Insights at ACCA, said it’s important for directors everywhere to take their responsibilities seriously. 

“Not all directors need to be finance professionals, but it’s crucial that directors are engaged and are able to understand and explain the company’s financial reports,” McGhee said.

“As well as important details on practice and process, this paper provides the questions directors need to be asking to make sure the financial reporting process is sound, and the output of that process provides meaningful information to investors and other users.

Full press release

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