The Chartered Institute of Management Accountants, PricewaterhouseCoopers LLP and Tomorrow's Company have embarked on a global study to explore what changes are needed to make corporate reporting fit for purpose for the future.
According to the organisers, the financial crises of the last decade have demonstrated serious shortcomings in the understanding of corporate business models, the alignment of incentives, and the management of risk. The current corporate reporting model has not highlighted where these shortcomings exist.
This failing is exacerbated by the pace businesses are changing at today. A plethora of new challenges are impacting long-term success, including a shift in the global balance of power, resource constraints and climate change. This landscape thus provides a compelling reason to review what the major barriers to effective reporting are and how these might be overcome.
Key areas the global study will focus on are: common goals; incentive structures; competence of key stakeholders; ability to deal with complexity and change; and ability to influence.
To support the study, the proponents are seeking comments and opinions that must address three essential questions:
- What are the weaknesses and strengths in the current system?
- What are the barriers obstructing the evolution of corporate reporting?
- What solutions should you propose to rectify these weaknesses?
Deadline for submission is September 17, 2010.