FYI Article – The Importance of Financial Statement User Input
The Accounting Standards Board (AcSB) is keenly interested in receiving input from its stakeholders, which include users, preparers, auditors, regulators and academe. One of the most difficult, but equally important groups, to hear from is users of financial statements. Standard setters, like the AcSB, need to hear from users so that our standards result in financial statements that provide meaningful information, enabling investors and others to allocate their resources to full advantage.
One of the ways the AcSB ensures user needs are heard in the standard-setting process is through our well-established User Advisory Council, which has over 20 members. The User Advisory Council helps the AcSB to understand how users of financial statements, including investors and investment professionals, equity and credit analysts, and rating agencies use financial information. This user community feedback assists the AcSB in developing high-quality accounting standards that provide useful and reliable information at reasonable cost.
As Canadian publicly accountable entities and others know, the AcSB adopts the International Accounting Standards Board’s (IASB) International Financial Reporting Standards (IFRSs). Formal bodies of users like the User Advisory Council are a rare breed, and the staff and members of the IASB consider the Council to be a valuable consultation tool, frequently participating in their meetings. They often use the User Advisory Council as a sounding board in the development of new and amended IFRSs.
The User Advisory Council is an important body to obtain users’ input so that they can receive financial statements that are beneficial to them.
Harry Klompas, CPA, CA
Secretary, Accounting Standards Board
Phone: +1 (416) 204-3236