With new auditing rules and underlying regulations on cross-border taxation, one of Europe’s traditional strength services – financial reporting – faces challenges on several fronts:
Corporate governance initiatives are increasing the range and substance of traditional corporate reports;
Financial reporting is increasingly used as a policy instrument, targeting specialised tax areas; is this making matters too complicated for ordinary executives, and how well does it sit with the trend towards introducing a more holistic, integrated reporting approach; and
A global trade agenda poses serious questions about which types of reporting standards are likely to become global norms in the future.
How will these developments impact on financial reporting in the future, and can Europe’s auditors continue to play a key role in the increasingly global market? Is reporting becoming too complex for non- accountant stakeholders to understand?