The article is a reprint fronm 2011 but worth reading — however, as stated for previous post, this also is not a light read. The study deals with corporate governance understanding, global crisis understanding, fallout and changes of crisis now demands understanding — recommended for leadership, governance and management — all who want a better indepth criteria to measure today’s environment.
Excerpt: In response to these various criticisms of financial reporting, a considerable number of significant reform initiatives are underway that will directly impact Australian financial reporting. This paper reviews these criticisms and the steps being taken to respond to them.The paper does not support the view that financial reporting was a cause of the GFC or that it exacerbated it. However, it does acknowledge that the GFC has been a wake-up call for standard setters and their constituents who may, with the benefit of hindsight, have been somewhat preoccupied with the complex structural challenge of establishing global standards and less focussed on some of the known weaknesses and gaps in those standards.The GFC generated calls for answers to problems that may have otherwise been ‘queued’ for attention some time in the future. Answers suddenly became more critical than refining process. Real standard setting was needed, quickly.But much of the criticism seems to have been well and truly born outside of the GFC – especially in the travail of introducing IFRS in Europe. Some may also have been whipped up by those under pressure from the GFC and feeling the need to divert blame. And some may well have come from confused expectations of the role of financial reporting.