What is the “financial reporting supply chain” and how can it be better managed in the wake of the global financial crisis?

Twenty-five senior corporate finance executives from around the world address these questions in recent research from the International Federation of Accountants (IFAC).

The postcrisis analysis follows a 2008 IFAC report that defines and examines the financial reporting supply chain.

The key insights of the more recent research (“Business Reporting Recommendations from Key Leaders”) are interesting:

• The primary responsibility of directors is performance, not compliance.

• Organizations should expand their view from a shareholder perspective to a stakeholder perspective.

• Organizations should take economic as well as social and environmental performance factors into account.

• Organizations should better integrate governance and sustainability into [corporate] strategy, operations, and stakeholder communications.

• Organizations should further improve their stakeholder communications.

Here is an overview of the report. ###