The Expanded Role Of Financial Reporting In Global Markets

Abstract

Financial reporting in global economy is the subject matter of this essay.  The present system provides information that is objective past-oriented, technically precise, and quantitative.  What is needed for worldwide information demands in financial markets, however, is a system which recognizes the importance of a qualitative dimension and leans toward relevance in the reliability-relevance tradeoff.  Long-term profit projections and plans should be highlighted; professional judgment should take precedence over technical precision.