ICAEW examines financial reporting and users’ needs

ICAEW examines financial reporting and users' needs

The ICAEW is to launch a study of financial report users and their needs

USERS OF FINANCIAL reports are the focus of a new study by the ICAEW. Different groups, their needs, and the way in which these overlap and diverge will be examined, with a view to informing the debate on who financial reporting is for.

Corporate reporting manager Brian Singleton-Green (pictured) said the study was sparked by debate over whether investors or regulators should be prioritised. Entitled Financial Reporting: Different Users, Different Needs, work will begin in the second half of this year, with publication anticipated for December 2012.

The credit crisis threw up questions over financial reporting, with some experts challenging the traditional assumption that accounts should be aimed at investors and shareholders. This found favour with regulators, who argued the primary purpose reporting should be to boost financial stability.

Singleton-Green said the study is not intended to decide who is right or wrong, but rather, to collect information on what users want from financial reporting, and examine alternative means of gathering data.

Investors are often thought of as a homogenous group, and the study aims to discover whether this is sensible, what their needs are, how far they are compatible, and what could be done if they diverge.

Singleton-Green will work alongside Robert Hodgkinson, executive director of technical strategy, relying mainly on existing research. The European Financial Reporting Advisory Group is conducting a parallel piece on the information environment of users, and the two bodies will liaise throughout.

“Realistically, we don’t expect any immediate changes as a result of this study. We hope, rather, to make a contribution to the debate, to help people become better informed, and potentially promote consensus on the purpose of financial reporting and users’ needs,” said Singleton-Green.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource