Special committee formed to enhance business reporting.

A special committee aims to help improve the quality and transparency of business information used in decision making.

CPAs in public practice, as well as those who serve in the accounting or finance functions for their companies, now face a myriad of reporting responsibilities. In response to the CPA's increased role and its associated value to the public, a new committee was approved by the AICPA Board of Directors in December 2002 to explore how to enhance the delivery and content of business-related information. Chairing this effort for approximately a two-year initial term is Mike Starr, U.S. managing partner of strategic services for Grant Thornton LLP.

Committee initiatives

The Special Committee's mission is to establish a collaborative with investors, creditors, analysts, regulatory bodies, standards-setters, corporations, accounting firms, and other stakeholders to improve the quality and transparency of information used for decision-making. The conceptual framework for enhanced business reporting is based on five fundamental elements whose goals are to:

* Enable stakeholders to see an entity more through the eyes of management.

* Allow for customization to meet the needs of individual stakeholders.

* Address public demands for corporate accountability.

* Make information available online and real- or near real-time.

* Provide assurance to close the expectation gap.

The five fundamental elements of enhanced business reporting are:

1. Systems reliability. Successful entities are proactive in their assessment and management of information technology related risks. These organizations understand the competitive advantage in protecting the completeness and accuracy of data, guarding against the inappropriate access to systems and data, and ensuring the availability of systems to users. Enhanced business reporting envisions providing assurance (potentially on a continuous basis) on systems reliability and data integrity to enhance the level of stakeholder trust in information provided.

2. Information dissemination. Technology opens an array of opportunities to provide stakeholders with an almost infinite number of alternative displays of business information. The information needs of large and small equity investors, creditors, those interested in nonfinancial performance measures, and people interested in environmental issues vary widely. Extensible Business Reporting Language (XBRL), a standard for disseminating information, now...