Article Abstract:
The single European market in 1992 will require unified corporate reporting practices. The Fourth Directive, which deals with the accounts of individual companies, and the Seventh Directive, which deals with consolidated accounts, are two areas where consolidation efforts have been made. The Fourth Directive, which has been implemented by nine of the 12 member states, has standardized European accounts to a degree, but figures are still heavily influenced by national factors. Two of the member states have enacted the Seventh Directive, and the outcome for the directive, which must be implemented by 1990, will probably parallel that of the Fourth Directive. A greater demand for a global end product will ultimately lead to a reduction in domestic influence on reporting practices.
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Article Abstract:
Making Corporate Reports Valuable (MCRV), a document produced by the Institute of Chartered Accountants of Scotland's Research Committee in 1988, contains some feasible proposals, but some problems need to be overcome. The MCRV contains proposals for improved corporate reporting and the disclosure of information. A study of the regularly issued reports of 300 UK companies revealed that the amount of information disclosure was fairly low. Only 1% of the companies disclosed information related to additional segment information, but 21% of the firms disclosed the additional personnel information called for by the MCRV.
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Article Abstract:
The Accountants Magazine invited four financial experts to discuss the possible impact of the Cadbury report on corporate governance. The discussants included finance directors Ian Bodie of Sidlaw Group PLC and Ian Boyd of Weir Group PLC, as well as auditors David Nicolson of KPMG Peat Marwick and Brian McGhee of Arthur Andersen and Co. Also among the topics discussed were the Auditing Practices Board's proposals regarding going concern and the auditor's report, and the recently introduced Operating and Financial Review for annual corporate reports.
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