A Comprehensive Business Reporting Model

A Comprehensive Business Reporting Model
Financial Reporting for Investors July 2007

CFA Institute Centre Comprehensive Business Reporting Model Staff
Kurt Schacht, CFA
Managing Director

Rebecca McEnally, CFA
Capital Markets Policy Group

Georgene Palacky, CPA
Director Financial Reporting Group

Members of the Comprehensive Business Reporting Model Subcommittee and the Corporate Disclosure Policy Council
Gerald I. White, CFA, Chair
Grace & White Inc. New York, NY United States

Robert F. Morgan, CFA
Forbes Morgan Consulting Mont Royal, Quebec Canada

Patricia McConnell, CPA, Past Chair
New York, NY United States

Trevor W. Nysetvold, CFA
ExxonMobil Fairfax, VA United States

Jane Adams, CPA
Maverick Capital New York, NY United States

David E. Runkle, CFA
Trilogy Global Advisors, LLC New York, NY United States

David C. Damant, FSIP
London United Kingdom

Toshihiko Saito, CFA
Capital International Research Chiyoda-ku Tokyo Japan

Christian B. Dreyer, CFA
Tertium datur AG Unterägeri Switzerland

Ashwinpaul (Tony) Sondhi
A.C. Sondhi & Associates, LLC Maplewood, NJ United States

Barry Ehrlich, CFA
Och-Zeff Management Europe London United Kingdom

Edward (Ted) Stevens, CFA
BlackRock, Inc. Wilmington, DE United States

Anthony Good, ASIP
Norwich, Norfolk United Kingdom

ISBN 978-1-932495-70-6

A COMPREHENSIVE BUSINESS REPORTING MODEL:
Financial Reporting for Investors
CFA Institute Centre for Financial Market Integrity July 2007

Contents
Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1. Why Does Financial Reporting Matter to Investors and Investment Professionals?
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 iii

Chapter 2. A Conceptual Framework for the Comprehensive Business Reporting Model
A. B. C. D. Objective of Financial Reporting and Disclosure . . . . . . . . . .