About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

15 Com. Lending Rev. 65 (1999-2000)
FASB Studies the Electronic Reporting of Business Information

handle is hein.journals/cmlrv15 and id is 305 raw text is: Accounting FASB Studies the Electronic Reporting of Business Information ADRIAN P. FITZSIMONS AND VICTORIA L. SHOAF ADRIAN P. FITZSIMONS is professor of account- ing and taxation at St. John's University, Jamaica, New York. VICTORIA L. SHOAF is assistant professor of account- ing and taxation at St. John's University. O n January 31, 2000, the Financial Accounting Standards Board (FASB) published the first part of a three-part business reporting research project to assess the kinds of business information beyond financial statements that companies are reporting publicly. Seven work- ing groups are involved in the overall project, supervised by the FASB steering committee. This first segment, Electronic Distribution of Business Reporting Information, focuses on the distribution of business information on the Internet. The report provides the results of a study conducted by the working group, which includes a detailed documentation of current practice by larger companies and describes third-party Internet sources of busi- ness information about these companies. The report also discusses technological changes projected and already under way and consid- ers the implications of technology for business reporting in the future. The FASB is first addressing electronic distribution because many companies, regard- less of size, are making financial and other business information available to the public through Web sites. The study enumerates potential motives for companies to provide financial information on the Internet, which include the following: reducing the cost of and time to dis- tribute information, communicating with previously uniden- tified consumers of information, supplementing traditional disclosure practices by increasing the amount and type of data disclosed, improving access to potential investors for small companies. The report notes that technological advances have led to unprecedented changes in the means available to corporations and government agencies to disseminate informa- tion. At the same time, there has been a cor- responding growth in the demand for electronic delivery of business information by online investors, who frequently conduct all of their trading and research through the Inter- net without guidance from brokers or other investment professionals. Despite the opportunities available via the Internet for companies to add value to their disclosures, the study found that most companies currently distributing business information electronically employ a rather conventional presentation, with text and static graphics, equivalent to a paper presentation. Rather than elaborating on previously deliv- ered information, the content tends to excerpt or summarize. It is generally not useful to analysts, who find the quality, timeliness, and specificity of information to be deficient and who have better sources. There is some move- ment to a more dynamic presentation and CoMMEKcIAL LENDING REvIEW 65 FALL 2000

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most