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A Changing Financial Reporting Ecosystem

Sunday, March 8, 2020

Market stakeholders — auditors, institutional investors, public company board members and public company executives — must pivot from the status quo to support a rapidly evolving financial reporting ecosystem. Why?

Institutional investors are showing increased interest in — and reliance on — information reported by public companies outside of audited financial statements, including:

  • Environmental, social, governance, and diversity metrics
  • Cyber-risk management or other types of enterprise-risk management disclosures
  • Intangible indicators of value (i.e. a company’s brand and intellectual property)
  • Non-GAAP financial measures

The health and stability of capital markets depend on this company-reported information being consistent, reliable and comparable. These attributes are essential to the continued public trust in global markets.

At the CAQ, we are uniquely positioned to work with institutional investors and other market stakeholders to meaningfully adapt this evolving reporting ecosystem before a crisis erupts.

Now is the time for market stakeholders to come together to develop voluntary best practice standards for public company-reported information. Don’t wait to face regulation developed in the heat of the next crisis.
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