The relationships between the financial reporting team members are critical to the quality of the financial reports
Senior management requires entirely new levels of visibility into reporting processes to gain the confidence to certify the content of their financial reports
. Corporations need to establish a complex, bottom-up approach for evaluating their internal controls, soliciting individual input and assessment from across the enterprise.
And what can be done about the usefulness of financial reports
? Some of the participants' suggestions were to improve the communications among participants in the financial reporting supply chain (users, preparers, auditors, standards setters, and regulators); produce financial and business information that is relevant, reliable, and understandable; include more business-driven information in financial reports
; and promote the use of technology to enable users to compile their own information.
These PEAs are followed by detailed financial reports
that often generate little stock-market reaction.
companies listed on Nasdaq and 16 percent listed on the New York Stock Exchange have no research coverage, according to a Thomson Financial report
. That means there's no analyst following these companies to speak on how well they are doing and put the word out on the capital market.
XBRL is a free eXtensible Markup Language specification that uses accepted financial reporting standards and practices to translate financial reports
across all software and technologies.
Companies first submit plain-text financial reports
to the SEC.
XBRL enables users to access financial reports
in a matter of seconds and move the data to the users' analytical software with literally "a click of a mouse." This gives the users more time to focus on making decisions, which could decrease credit costs and increase analysts' coverage of smaller public companies because of the lower costs of analysis.
[With] the new disclosure requirements, there is clearly a different standard of materiality that regulators, shareholders and the investing public have imposed on them with regard to what is disclosed in their financial reports
state and local governments that prepare their financial reports
according to generally accepted accounting principles.