AICPA Readies New Business Reporting Model
The American Institute of CPAs is gearing up to establish a new business reporting model comprising online, real-time disclosures and performance-based measurements. AICPA's Alan Anderson explains the new model will consist of five elements and will open up new service opportunities for accounting firms of all sizes.
The five fundamental elements of the new model are:
- Reliable systems to collect and analyze information.
- Industry-specific financial and nonfinancial performance measures.
- Better quality disclosures written in "plain English."
- Corporate accountability.
- Real-time distribution of information.
The current issue of the CPA Letter explains that online, real-time information incorporating the five fundamentals is the only way to truly meet marketplace demand for more relevant, up-to-the-minute information.
To build a migration plan to the new model, the AICPA has formed a special committee that consists of representatives from assurance services, consulting services, the Auditing Standards Board, accounting standards, business and industry, government, PCPS-the Alliance for CPA Firms and the board of directors. The expectation is that the committee will have various task forces working toward the common goal of making all five elements successful.
For more details, download a Q&A discussion with Alan Anderson, AICPA's senior vice president, member and public interests.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.