Financial Reporting for Investors
The Comprehensive Business Reporting Model is a framework for developing financial reports and disclosures that meet the needs of investors, such as equity investors, creditors, and other providers of capital.
What it does:
- Proposes 12 principles to ensure that financial statements disclosures are relevant, understandable, accurate, and complete
- Calls for broader, more comprehensive business reporting that provides sufficient information to investors that is needed to understand the wealth-generating activities of a company and the results of those activities
Benefit of the CBRM:
- Improves the ability of investors and investment professionals to evaluate companies' performance and financial condition, and to make well- informed investment decisions