Currently the US Securities & Exchange Commission isn’t even allowing voluntary filing of non-financial data to be included with financial reports by public companies
Interesting article in the UK’s Financial Director about yearend non-financial reporting required by UK companies as part of the EU mandate for 6,000 + public company requirement to report non-financial information to the capital markets and important stakeholders such as investors. The UK most now adopt the European Union’s own rules around the reporting on long-term risks and strategies as part of the new EU Non-Financial Reporting Directive . The directive’s provisions, which aim to harmonize and improve non-financial reporting across the EU, must be transposes into law by 6 December 2016. Will pressure in the United States for the US Securities & Exchange Commission and/or the US Congress to adopt a similar rule as EU public companies move forward with this EU Directive for public company non-financial reporting to be included into financial reporting (integrated reporting)?
Importance of Diversity and Inclusion Having an active diversity and inclusion strategy and disclosing these metrics included in the financial report also builds the business case to attract an increasing number of investors looking for this additional data disclosure
Great article about UK’s new narrative reporting framework for listed companies, banks and insurance enterprises with more than 500 employees that went into effect for financial reporting periods on or after January 1, 2017
Now with the Foundations for Evidence-Based Policymaking (FEBP) Act becoming law – efforts will be underway to deploy XBRL for Federal and possibly state and municipality financial reporting for better data analytics using a machine-readable format like XBRL using common accounting standards for financial reporting. WHY IS GOVERNMENT FINANCIAL REPORTING USING XBRL IMPORTANT NOW?
The European Parliament has voted in favor of new rules that will strengthen shareholder rights and facilitate cross-border voting under the Shareholders Rights Directive as the new Trump Presidential administration moves in the complete opposite direction related to enhanced corporate...
Great article from the global law firm of Baker McKenzie about mandatory requirements from securities regulators for public company sustainability disclosure that also needs to be included in financial reporting as a company “best practice.” CFOs, financial reporting teams and management accountant responsibilities are going to become much more broaden as corporate social responsibility tasks are expanded under this C-Suite
Over the years the IMA has championed the use of XBRL as a machine-readable data format for financial reporting to promote greater transparency and accountability to support economic growth and new jobs in the capital markets. ESMA states in its disclosed press release that it has concluded that Inline XBRL is the most suitable technology to meet the EU requirement for issuers to report their annual financial reports in a single electronic format because it enables both machine and human readability in one document
Stay tuned as the debate continues over modernizing financial reporting to include these other important capitals that link companies and governments to the public interest through shared goals.