I would like to congratulate all the winners and highly commended companies. All the companies that were shortlisted are making big steps in the quality of their reporting. Further information can be found on www.bptawards.com
The weekend press was again full of debates and discussions about the future of Greece and the euro zone. Every opinion one is likely to hear is being voiced, from those at the heart of the crisis, to concerned bystanders (including the stone throwers), through to bewildered market participants. If one thing is consistent it's everyone's desire for greater certainty of the direction of travel. It's this uncertainty no one likes but it’s barbaric to think a sovereign state can be treated like a bankrupt company, even if this is how financial markets are motivated. What is also clear is the desire for collaboration and shared interest, the core political mantra of the crisis, is showing enormous stress fractures as individual sovereign interest takes centre stage. With political leadership lacking and social unrest rising, now is the time to remember all those who lost their lives during two world wars and remember why the European Union was created in the first place.
At these times it's comforting to know that the majority of us go to work and continue to focus on the daily routine and what we can influence. History would suggest the good times will return and the world will be a better, if not different place as a consequence. In the microcosm of the accounting world we continue to make proposals to streamline and improve the reporting model. Here, I believe the direction of travel is clear, what's up for debate is more about the detail. So it was with interest that I read last week about the call from a group of the UK's largest investors for an upgrade to the reporting of "going concern”. The idea that we should move from a binary model that tells the reader little, to a model where directors and auditors are required to disclose more information on the issues facing the company, seems like a sensible development. As with all such changes the devil will be in the detail, but better going concern reporting, if achieved, must help those wishing to understand the future, even if the time frame is relatively short.
Another proposal worth mentioning comes from the Report Leadership group who have been championing improved reporting for a number of years. This group, which I am part of, are in the final stages of publishing an exciting document focused on enhancing governance reporting. Put simply it is trying to ensure governance reporting focuses on the substance of governance activity rather than its form. I will share this document shortly as I am sure it will inspire new ideas and thinking in this critical area of reporting.
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