The Future of Financial Reporting

In this episode of The Better Finance Podcast, EY’s Myles Corson is joined by Leslie Seidman, chair of the recent Pacesetters in Financial Reporting Conference and Executive Director of the Center for Excellence in Financial Reporting at the Lubin School of Business, for a discussion exploring enhancing financial reporting practices in a time of exceptional change.

EY’s Myles Corson is joined by Leslie Seidman, chair of the recent Pacesetters in Financial Reporting Conference and Executive Director of the Center for Excellence in Financial Reporting at the Lubin School of Business, for a discussion exploring enhancing financial reporting practices in a time of exceptional change.

Key takeaways

• At this year’s Pacesetters Conference, discussion surrounded how companies can communicate most effectively with stakeholders and investors, as well as providing insights and practical suggestions to enhance reporting practices throughout a time of tremendous change for the reporting world.
• Although the move toward a new revenue recognition rule is encouraging global consistency for the most important line item in financial statements, it does require adjustment on the behalf of companies and investors who may be extremely content with their current accounting style.
• Companies can ease adaptation apprehension by helping investors understand the new accounting standards’ impact on both quarterly and annual ratios, as well as the increased dependence on estimates.
• Increased demand for information and environmental, social and governance, is in turn pushing companies toward more transparent strategy and consistent investor communications.
• As business trends toward an increased emphasis on real time data, an increased emphasis on foundational analytical training is critical within the finance and business education frameworks.