With many of its major projects completed, and IFRS widely adopted across the globe, the IASB has decided to prioritise ‘better communication’ in the coming years.
The plans that Hans Hoogervorst outlined at the IASB conference in Zurich are encouraging, as there are widely shared concerns about the communication effectiveness of today’s financial statements.
The improvements contemplated in the speech should ultimately lead to financial statements that better address investor demands for relevant and reliable information. A tick-box approach to financial reporting can result in large quantities of poorly organised data, drowning out valuable information and failing to depict a company’s performance clearly to investors.
But the IASB is also looking at its role in the broader context of corporate reporting, and whether its remit should extend to non-financial reporting. This is a subject we explore in our thought leadership on Better Business Reporting.
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