IFAC report on Financial Reporting Supply Chain

06 March 2008

The International Federation of Accountants issued a new report which examines improvements to financial reporting. The report finds that significant improvements have been made to the financial reporting process, corporate governance and auditing, but that financial reports could still be more useful.

 

Participants of the report feel that the three key areas of the financial reporting supply chain – corpo­rate governance, the process of preparing financial reports and the audit of financial reports – have clearly improved in the last five years. Unfortunately, however, they do not feel that the products of this supply chain, the financial reports, have become more useful to them. To resolve this situation, there needs to be continuing effort made by all participants to discuss and debate the purpose and objectives of financial reporting so that the information that is reported best suits the information needs of the wide range of users.

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