European simplification of financial reporting rules

The European Federation of Accountants (FEE) has published a background note on the European Commission’s Communication on Simplification of EU rules on Company Law, Accounting and Auditing. The Background Note provides a history of the current simplification efforts and a reference to FEE’s Position on EC Simplification Project.

CFA Institute promotes a new business reporting model

The CFA Institute Centre for Financial Market Integrity has published a new financial reporting model to enhance the ability of financial analysts and investors to evaluate companies in making investment decisions. The publication, A Comprehensive Business Reporting Model: Financial Reporting for Investors, was issued in July 2007. It proposes 12 principles to ensure that financial statements are relevant, clear, accurate, understandable and comprehensive.

Canadian Shareholder Profile and Attitudes

As a basis for identifying and addressing the kinds of information that various stakeholder groups want or are likely to want, it is important to consider their information sources and their objectives. In this regard, the 2004 survey on Canadian Shareowners (undertaken periodically by the TSX Group) provides some insight. The survey found that 49% of adult Canadians are shareholders, either as individuals or participants in mutual funds. A number of share ownership surveys are available on the World Federation of Exchanges website.

Statistics database on cross-border securities

Deloitte has updated its Database of Statistics which provides clear evidence of the globalization of the world’s capital markets and of the need for global financial reporting standards. The update reflects July 2007 data on the number of non-US companies listed on member exchanges of the World Federation of Exchanges and details of cross-border listings on the New York Stock Exchange, NASDAQ and the London Stock Exchange. The data includes cross-border lending and accounting standards used by companies listed on the Deutsche Börse, as well as foreign companies registered with the US Securities and Exchange Commission (SEC).