About
The International Accounting Standards Board (Board) and Hong Kong Institute of CPAs (HKICPA) invite analysts, investors and users of financial reports to have a say in what constitutes better communication in financial reports.
Background
'Quality vs Quantity' is an expression often heard from investors discussing the topic of disclosures in financial reports. Three main concerns about disclosures were observed:
- not enough relevant information;
- irrelevant information or disclosure overload; and
- poor communication of disclosures.
To address these concerns, the Board published the Discussion Paper Disclosure Initiative: Principles of Disclosure, which proposes disclosure principles that aim to improve communication in financial reports.
These principles could change the way a company presents its financial reports, and therefore impact the way you assess a company's financial information.
Better Communication: what do analysts and investors need?
Information in financial reports should be relevant to users, as well as faithfully represent the financial situation of a company.
Your views as users of financial reports are important, in particular, on:
- what constitutes effective communication in the financial reports;
- what constitutes fair presentation of performance measures such as EBITDA;
- when, where and how financial information should be disclosed.
If you would like a say in the way financial information is reported in the future, join the staff of the IASB and HKICPA, and other users of financial reports in a discussion on the proposed disclosure principles.
To register please send an email including your contact details and organisation to outreachhk@hkicpa.org.hk. There is no charge for participation.
