By Mark Vaessen, Global IFRS Leader at KPMG

Many of the business leaders we spoke to for our publication on corporate reporting were optimistic about the impact of new technology. They highlighted two developments that are likely to help investors find their way round corporate reports.

By Tony Cates, UK Head of Audit at KPMG
Much of the hoped-for debate around the future of corporate reporting is not about what is disclosed but about how it is disclosed and by whom. Indeed, you can’t expect good corporate reporting if the process is faulty. In other words, good governance is a prerequisite of good disclosure. We would argue that the process needs to change because the demands made upon preparers and auditors are changing.

By Mark Vaessen, Global IFRS Leader at KPMG
The balancing of risk and opportunity lies at the heart of corporate reporting. Indeed, in the financial crisis that began in 2008, we lacked insights into the risks that were building up. Admittedly, there were already warning signs to be found in corporate financial statements prior to 2008, if people had looked hard enough. But clearly more needs to be done by preparers to explain to investors the risks companies face and how they are dealing with them.

By Mark Vaessen, Global IFRS Leader at KPMG
In the current corporate reporting model, an overwhelming emphasis is placed on accurately assessing a company’s financial progress over the previous year or quarter. Regulators and standard-setters have focused on requiring companies to provide a record of their past financial performance.

By Mark Vaessen, Global IFRS Leader

The length of a public company’s annual report has grown remorselessly over the past 10 years. In the U.K. and the U.S., the average number of pages is well over 100. Is the higher level of disclosure shining more light on a company’s affairs?

By Joachim Schindler, Global Head of Audit, KPMG

The global financial system is slowly undergoing a series of reforms, but one crucial element of reconstruction is being ignored. The corporate reporting model in its current form does not meet the needs of investors.  It is also becoming increasingly difficult for it to fit the requirements of preparers, auditors, regulators and standard-setters. It is time to begin a wide-ranging debate about what is wrong with the current model and how to change it.