- Personal risk and liability for directors and management
- Cost-benefit concerns
- Transition to International Financial Reporting Standards (IFRS)
- Complying/reconciling accounts to different financial reporting standards
- Increased audit cost relative to perceived benefits
- Focus by companies on compliance instead of essence of the business
- Regulatory disclosure overload
- Lack of forward looking information
Financial Reporting Supply Chain: Current Perspectives and Directions
The IFAC evaluates the major efforts to change and improve financial reporting in these four areas: corporate governance, the financial reporting process, the audit of financial reports and the usefulness of financial reports.
Also investigated are these questions: Has the financial reporting process become better or worse? Have the financial reports become more or less relevant, reliable and understandable? What should be done next?
Areas of concern include: