However, CFO and investor relations experts have significantly improved the cash flow situation, the introduction of management practices more in line with the cash position and to assess the performance of the company to become a higher standard of relevance, and reduce the preparation and reading of complex statements level.
Financial instruments
Measurement
Financial crisis highlights the difficulties in preparing the accounts, especially when the company39s assets and liabilities when the valuation is almost impossible. Even if a large number of application guidance and case, or it is very difficult for the increasingly diversified and innovative financial instruments to find the correct method of accounting. Ahold CEO John Rishton think.
We are aware that this is a difficult issue, and at this moment of great political significance. Nevertheless, some CFO pointed out that the traditional interpretation of the balance sheet can not be huge fluctuations in the value of financial instruments. The question now is included in the accounts of the economic indicators is based on the current situation and the future pandora jewelry value judgments made, in itself a certain volatility, Travis Perkins Chief Executive Geoff Cooper said, I think the company is responsible for formulating the assessment of assets and liabilities Thinking people do not fully clear econometric indicators of the volatility itself. Wholesale jewelry
Disclosure
While some companies and investors and analysts tried to explain that when talking to volatility, such as why a certain point in time the value will not clear or misleading, which involves the disclosure of complex financial instruments, the complexity of the problem. Even if we can sum up a reliable way of measuring these time points, the valuation problem persists, it will distinguish between corporate governance and the relationship between the valuation is very difficult.
To make matters worse, CFO, we think there are too many obligations of information disclosure, even if there is no major event information should be disclosed. Financial reporting was too complicated in many cases it is useless. Disclosure of information, including details of the derivatives is not necessary, Travis Perkins Chief Executive Geoff Cooper said he can understand a company engaged in derivatives transactions in the company39s information disclosure nuanced, but a matter of fact, for most companies, I that disclosure of such content does not matter much, the content is usually very difficult to understand people.
In this regard, HSBC Finance Director Douglas Flint to oil and gas industry, for example, If a company39s natural gas trading as part of the contract contain embedded derivatives, I think this tool is no need to explain, because how to do this and companies business unrelated to the accounting data will only increase the difficulty of the interpretation of volatility.
However, CFO and investor relations experts have significantly improved the situation of the cash flow statement
July 8th, 2009 · No Comments
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