Standardised Reporting Relevant for Business
Dr Nicolas Peter, Chief Financial Officer of BMW AG, gave a keynote address outlining BMW’s own experiences with standardised reporting at a stakeholder event in Munich on 26 June 2019, hosted by the IFRS Foundation and the Deutsche Rechnungslegungs Standards Committee (DRSC).
Dr Peter demonstrated how the development of global, uniform accounting, underpinned by the IFRS Standards, has been beneficial for BMW. Standardised accounting has allowed comparability between multinational companies and forms one of the fundamental pillars for a globally integrated economic system, offering access to financial markets worldwide.
Despite comprehensive standards entailing compliance effort and expense, increased harmonisation and alignment has reduced duplication and the reporting burden. However, Dr Peter highlighted concerns about the comparability of reporting, questioning how adjusted figures mean it is not always possible to compare reports at a glance. Further, with the increased focus on forecasts and sustainability reporting of non-financial aspects, standardisation is more limited as some flexibility and volatility is expected, if not required.
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