045 Simplification of quarterly reports
Accounting Standards Board has made a concrete argument
regarding the simplification of quarterly reports in the 211th
and 212th session of the committee. Especially, they argue
that the statement of cash-flow should disappear in the first
and third quarterly reports.
In the 211th session, they made an argument from the
standpoint of preparers of listed companies. We could
understand that the burden should be lowered from preparers.
On the other hand, investers’ needs towards the CF statement
lack their objectiveness.
They argue that the CF statementshould be disclosed as
they have been. Although we understand that investors need
to evaluate the seasonal variance of the companies performance
and risks that companies hold, it seems that not all of the
elements that CF statement offers are necessary for them.
The following 212th session saw a conclusion that they
should make a more detailed disclosure of non-monetary
items (such as depreciation and provisions) in order to
balance both preparers’ and investor’s needs.
The meaning of this conclusion in the 212th session is that
they disclose information with which investors could make
a statement of cash-flow by themselves. Details might change.
Nevertheless the simplification of quarterly reports will be
surely realized.
