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19 May 2011
REPORTING should remain rules- rather than principles-based because more regulation will fail to prevent further economic crises, warned a CIMA professor.
Wim Van der Stede, professor of accounting and financial management at the London School of Economics, told 130 delegates at a CIMA lecture that businesses should use financial reporting to convey a deeper understanding of their ethos and governance.
Further reading
He said that comply-or-explain frameworks are "superior to rigid mandatory compliance-based regimes", though warned that companies could still plump for the easier and cheaper 'comply' option. On this basis, he suggested 'explain-and-demonstrate' is a better approach.
"In line with this, companies would explain and demonstrate how their risk and governance practices are effective and shaped for real use rather than mostly comply through boilerplate reporting," he added.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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