The financial reporting system: seeing the bigger picture
Video recordings and academic papers from the 2020 Information for Better Markets conference.
As efforts are made to address problems with financial reporting, knowledge of how the wider financial reporting system operates, and how its players interact, is essential to understanding the real drivers of financial reporting quality.
This conference provided an opportunity to look at the bigger picture and examine financial reporting quality in the context of the wider financial reporting system. The event considered what a good financial reporting system looks like and examined the different ways in which the term 'system' can be interpreted. Speakers also explored how the key players, including preparers, directors, investors, standard-setters and regulators, interact and how these interactions affect financial reporting quality.
The financial reporting system: what is it?
Professor Michael Power, London School of Economics, looks at whether now is the time for an overhaul of the financial reporting system to prevent future corporate failings.
The response is from Mark Babington, FRC
Preparers and the financial reporting system
Professor Sarah McVay, Foster School of Business, University of Washington, considers the structure and incentives of preparers of financial reports, impediments to producing high quality financial reports and obstacles to effective oversight.
The response is from Julia Wilson, 3i.
Users and the financial reporting system
Professor Beatriz García Osma, University Carlos III de Madrid, reflects on the role of user engagement in accounting against a backdrop of new technology, increased complexity of financial accounting and the threat of information overload.
The response is from Jonathan Ford, FT