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.