The Financial Reporting Blog

A recent WSJ article indicates that transaction-crossing platforms like traditional brick-and-mortar stores or online markets can and do collect data that consumer-product manufacturers are willing to purchase in order to fine-tune their own products and marketing. Financial statements need to reflect current economic realities to stay relevant. Tangible physical assets may have been the primary source of value creation in an earlier era, but intangible assets increasingly drive the business models of a newer generation of firms.

Recently I found myself doing a double-take upon seeing the headline “FASB Looks to Uncomplicated Accounting—A Little, At Least.” Accounting standards becoming… less complicated? In response to various stakeholders’ concerns, the FASB launched an initiative to reduce complexity in accounting standards in July 2014. The FASB’s initiative comes at an opportune time, as accounting standards have become more lengthy and complex, so has the cost and difficulty of financial reporting. The objective of the simplification project is to improve the usefulness and transparency of financial information.