Big Four demand real-time reporting

The heads of KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte,
plus two global mid-tier firms have joined forces in Paris to call for an
overhaul to the way companies report financial performance.

The Big Four
plus Grant Thornton and BDO said the financial reporting model of the last
century has become redundant and proposed that static quarterly financial
statements be replaced by real-time, Internet-based reporting, including a wider
range of performance measures.

‘We believe the current model is broken,’ KPMG International chairman
told the FT.

‘There are significant shortcomings to
US GAAP (Generally
Accepted Accounting Principles) and issues of concern with international
financial reporting standards.

We’re not in a very happy situation,’ he said.

The six accounting leaders had been working on the proposals for more than a
year, the FT reported.

Further reading:

Auditing costs still too high due to Sarbox

Investors blast convergence of US and international

Multi-nationals handed standards reprieve

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