Rethinking Financial Reporting: Standards, Norms and Institutions
What are the properties of a good ﬁnancial reporting regime? There are three broad approaches to deﬁning better ﬁnancial reporting based on attributes, goals, and practice. The ﬁrst speciﬁes some attributes of good reporting. A second approach is to focus on goals of society or of some speciﬁed individuals or groups. Looking to practice for guidance on deﬁning and understanding the ﬁnancial reporting regime is the third major approach. These three approaches – attributes, goals, and practice – are not mutually exclusive. It is unlikely that any one of them is entirely satisfactory by itself; they complement one another. Better Financial Reporting argues for such a syncretic attitude to ﬁnancial reporting regime.