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 . . . . . . . . . .