NEW YORK-The International Federation of Accountants (IFAC) released on March 6, 2008 A new report, Financial Reporting Supply Chain: Current Perspectives and Directions, emphasizes that significant efforts to strengthen financial reporting in recent years have resulted in improvements in three key areas: corporate governance, the process of preparing financial reports, and the audit of financial reports. However, despite improvements to the financial reporting process, the report points out that the understandability of financial reports has not improved.
The report's findings are based on an independent global survey of participants in the financial reporting supply chain that was launched by IFAC on June 1, 2007 . The survey was designed to analyze the financial reporting supply chain and to develop recommendations to further improve the quality of financial reporting
Among the key findings, the survey found
- Corporate governance has improved, fueled by an increased focus on corporate governance and changes to company codes and standards.
- Convergence to international standards, enhanced regulations governing financial reporting, and improved internal control over financial reporting systems
To address the usefulness of financial reporting, survey participants recommended:
• Improving communications among participants in the financial reporting supply chain;
• Producing financial and business information that is relevant, reliable and understandable;
• Promoting the use of technology to enable users to compile their own information.
For more information please visit the following website: www.ifac.org