Living Up to the Spirit of Narrative Reporting Guidance

Regulators often say financial reporting should tell a story about a company. Yet, the MD&A provided by some US companies often presents reporting that falls short of the spirit of the MD&A regulations. Until now, the consequences of this have been limited. Nonetheless, in an increasingly global capital market, US companies may find capital more expensive — and more difficult to attract — if their narrative reporting is less transparent than that provided by foreign competitors. (Read the CPA Journal article Living Up to the Spirit of Narrative Reporting Guidance: Improving MD&A by Looking to Global Best Practices.)