EFRAG issued a report summarising and analysing the results of a recent survey of users of financial statements.
EFRAG issued a report summarising and analysing the results of a recent survey carried out of users of financial statements.
General purpose financial reports such as the annual audited financial statements are designed to meet the reasonable information needs of users who are not in a position to specify the information they receive. Yet, too much of the work of standard-setters is based on assumptions and unsupported assertions about those needs.
The principal aim of this survey has been to determine:
Ø how useful different forms of financial information are to users in their decision-making process;
Ø what improvements to financial information users require; and
Ø whether certain assumptions about the cash flow predictive objective and stewardship objective of financial reporting are valid.
Ø Amongst the messages highlighted by the survey are that users would like to see:
Ø more stability in reporting standards,
Ø improved comparability,
Ø simpler presentations that highlight key data and key disclosures,
Ø better disclosure of risk management information,
Ø more or better quality prospective information, and
Ø more highlighting of trends in growth and profitability.
The Needs of Users of Financial Information - May 2009
© EFRAG - European Financial Reporting Advisory Group
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