To Improve Financial Reporting, We Need to Disclose More Relevant Information

Mankin, J.A., Jewell, J.J, & Rivas, J.A. (2017). To Improve Financial Reporting, We Need to Disclose More Relevant Information. International Journal of the Academic Business World, 11(2), 93-100.

8 Pages Posted: 8 Jun 2017 Last revised: 20 Jul 2018

See all articles by Jeffrey A. Mankin

Jeffrey A. Mankin

Lipscomb University - Department of Accounting, Finance & Economics

Jeffrey Jay Jewell

Lipscomb University - Department of Accounting, Finance & Economics

Julio Rivas

Lipscomb University - Department of Accounting, Finance & Economics

Date Written: 2017

Abstract

The goal of financial reporting is to provide useful information for decision makers. Effective financial reporting is essential for efficient financial markets and provides transparency and accountability. Globally, there are two primary financial reporting systems. The United States, uses generally accepted accounting principles (U.S. GAAP). Outside the United States, the rest of the world uses international financial reporting standards (IFRS). Both systems require both financial and non-financial disclosures for companies that issue financial statements.

One required disclosure for both GAAP and IFRS is for companies to calculate earnings per share (EPS). This is an important financial ratio, but it is not the only important financial ratio. However, it is currently the only financial ratio that is required in company annual reports both in GAAP and in IFRS. In this paper, we recommend additional financial disclosures including a recommended set of financial ratios. These additional disclosures would be inexpensive but would provide relevant additional information to investors and thus would improve the quality of financial reporting.

Keywords: GAAP, IFRS, financial reporting, financial ratios, required disclosures

JEL Classification: M41, G14, G32

Suggested Citation

Mankin, Jeffrey A. and Jewell, Jeffrey Jay and Rivas, Julio, To Improve Financial Reporting, We Need to Disclose More Relevant Information (2017). Mankin, J.A., Jewell, J.J, & Rivas, J.A. (2017). To Improve Financial Reporting, We Need to Disclose More Relevant Information. International Journal of the Academic Business World, 11(2), 93-100.. Available at SSRN: https://ssrn.com/abstract=2982526 or http://dx.doi.org/10.2139/ssrn.2982526

Jeffrey A. Mankin (Contact Author)

Lipscomb University - Department of Accounting, Finance & Economics ( email )

One University Park Drive
Nashville, TN 37204-3951
United States

HOME PAGE: http://www.lipscomb.edu

Jeffrey Jay Jewell

Lipscomb University - Department of Accounting, Finance & Economics ( email )

One University Park Drive
Nashville, TN 37204-3951
United States
6159665769 (Phone)

Julio Rivas

Lipscomb University - Department of Accounting, Finance & Economics ( email )

One University Park Drive
Nashville, TN 37204-3951
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
164
Abstract Views
798
rank
182,517
PlumX Metrics