Public dissatisfaction with the mismatch between industrial rules of disclosure and post-industrial realities has surged in the last decade and a half, especially recently in the wake of well-publicized corporate swindles. In response, the American Institute of Certified Public Accountants (AICPA) convened a special committee on enhanced business reporting (EBR), asking it to develop a strategy that would “make better information available to investors, creditors and other stakeholders, helping them see an organization through the eyes of management and allowing them to make more informed decisions.” Accenture and AssetEconomics teamed up to formally propose an EBR solution that meets the committee’s goals without burying management in the tasks of data collection, calculation and presentation. This research note leads the reader through the basics of this proposed solution, which captures what has escaped the older accounting and financial reporting systems: the increasing importance of intangibles and future value in the composition of shareholder value.
Editor’s Note: a great article…
Authors: Eric R. Noren, John J. Ballow, Scott G. Burgoz
Subjects: Accounting, Finance