The Shifting Paradigm in Business Reporting and Assurance
The Journal of Accountancy provides a good summary of this new white paper by the AICPA Assurance Services Executive Committee. It explains that:
“The primary factors driving change in the reporting and assurance model include the shift from the industrial age to the knowledge age; advance in technology, globalization, and market reactions to lack of transparency; and new social structures. Arising out of these forces of change as analyzed in the paper, a common theme is the recognition that the current reporting and assurance model is inadequate for the effective allocation of capital in today’s market.”
The white paper talks about two efforts that we have explored before in the IC Knowledge Center: Extensible Business Reporting Language (XBRL) and Enhanced Business Reporting (EBR) that will help alleviate these weaknesses and move to improve the quality of information provided by companies to their stakeholders.
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