Interesting article … Largest democratic country in the world (India) is pushing the largest capital markets country in the world (USA) to have public companies disclose not only financial information but non-financial information to better serve both investors and the public
The debate yesterday closely followed the US Securities and Exchange’s Investor Advisory Committee vote on March 29, 2019 to consider imposing human capital management disclosure requirements as a part of its Disclosure Effectiveness Review and disclosure modernization project. Human capital disclosure is an important part of environmental, social and governance disclosures or what the accounting and auditing profession is calling “Integrated Reporting” which the IMA is an important member. The capitals identified by the IIRC are: financial capital , manufactured capital , intellectual capital , human capital , social and relationship capital , and natural capital
Management accountants will play an increasing role in providing verification, collection and calculations of vendor sustainability stats such as energy or resource usage and human capital and natural capital calculations for overall reporting
iXBRL is currently being used to data tag financial information of public companies in the world's capital markets for greater transparency and analysis for the public. We will have to see if this same data tagging and linking information (iXBRL) will be applied to non-financial information companies also disclosure to the capital markets supported and developed by the IMA and other XBRL consortium members
For more than 10 years – the US SEC has been using the XBRL data format for machine-reading of US Public Company Financial Statements as well as the US FDIC for US Bank Call Reports to support better transparency and accountability of the capital markets. The US SEC is now positioned to build-out the use of XBRL across the US capital markets .
The next question is if US public companies will follow the EU lead to stay competitive in a thriving global capital markets despite the New Administration's move away from greater transparency and accountability especially related to "say on pay", sustainability reporting related to human and natural resource capital disclosures? If public companies disclose additional non-financial information to investors -- management accountants ARE and WILL continue to play a major role if preparing, verifying and analyzing this information driving capital markets investment especially in the area of climate finance.
More than 2/3 of the world’s capital markets are using the IMA supported XBRL global structured data format for both financial and nonfinancial disclosures. More than 100 regulators in more than 70 countries have mandated the use of XBRL for financial and business reporting which includes financial, tax or government data used to drive both the capital markets and government services
Management accountants are going to hear more about this global effort and their involvement as this moves toward global adoption in the capital markets and by governments around the world
BUT the SPECIFIC data elements reported and consumed by the capital markets is not ASSURED by the auditor or the management accountant reporting this information to the CFO – the FULL paper report is ASSURED but not the specific DATA ELEMENT reported in the financial statement
Confirmed Keynote Speakers Include: Alain Deckers , Head of unit, Accounting and financial reporting at DG Financial Stability, Financial Services and Capital Markets Union, European Commission Michael Komarek , Senior Policy Officer, Corporate Reporting, European Securities and Markets Authority (ESMA) Richard Howitt , Chief Executive Officer of the International Integrated Reporting Council (IIRC) Beju Shah is Head of Data Collection and Publication at the Bank of England Dominique Laboureix , Member of the Single Resolution Board and chairs the Resolution Committee of the European Banking Authority Thomas Toomse-Smith, Project Director, UK Financial Reporting Council’s Lab Ole Sørensen , Senior Economist/Statistician of the European Central Bank Where: Paris Marriott Rive Gauche Hotel & Conference Center 17 Boulevard Saint-Jacques, Paris 75014 France Tel: +33-1-4078 7980 For DATA AMPLIFIED CONFERENCE Program Information For registration information The Sponsorship Guide can be downloaded from here About XBRL International, Inc