Companies’ financial statements should be cut
by 30%, according to research carried out by the Institute of
Chartered Accountants of Scotland (ICAS) and the New Zealand
Institute of Chartered Accountants (NZICA).
The ICAS and NZICA research, commissioned by
the International Accounting Standards Board, found more focused
information would lead to a greater understanding of the financial
performance of leading companies.
According to the report, there is a growing
concern amongst the financial community, including amongst
investors, about the increasing size of annual reports. Annual
reports have risen by 44% from 2005 to 2010 for UK listed
“We have carried out a massive spring
cleaning exercise, throwing out those disclosure requirements which
simply add clutter to the financial statements,” Deloitte UK senior
partner Isobel Sharp said.
Past president of the NZICA Tony Frankham
stated that “the recommendations now deserve the support of those
involved in the various jurisdictions internationally in preparing,
auditing, issuing and using financial reports in every country
using in IFRS.”