As the global economy continues to reform its financial system, one crucial element of reconstruction is being ignored. The corporate reporting model in its current form does not meet the needs of investors – and it’s becoming increasingly difficult for the model to meet the requirements of preparers, auditors, regulators and standard-setters. Now is the time to begin a wide-ranging debate about what is wrong with the current model and how to change it.
We interviewed ten reporting leaders to test the premise that fundamental reform is needed.
In KPMG’s The future of corporate reporting: towards a common vision we tested the premise that fundamental reforms were needed by interviewing these ten international leaders in the field:
All agreed on the need for change, but they did not concur on how far-reaching the reforms had to be or what should be altered.
Investors want forward-looking information from companies so they can assess the ability to create sustainable long-term value. Preparers need to connect the dots better in their public communications so that the balance of risk and opportunity is clearer. Regulators are demanding more accountability from corporate boards, and standard setters want to raise the bar for disclosure and analysis.
For some time, investors have demanded more than a binary pass/fail opinion from the auditor’s report.