TECHNOLOGY features prominently in the brief given to a new committee established by the U.S. Securities and Exchange Commission to study ways to simplify the U.S. financial reporting system.
The SEC Advisory Committee on Improvements to Financial Reporting will be chaired by Robert C. Pozen, chairman of MFS Investment Management in Boston and former vice chairman of Fidelity Investments. It will study the causes of complexity and recommend how to:
- make financial reports clearer and more useful;
- cut costs and burdens for preparers; and,
- better use technology to improve financial reporting.
In a statement, the SEC said part of the committee’s madate will be to “focus on how technology can help address accounting complexity by making financial information more useful to a greater number of investors. Through the power of XBRL, hyperlinks, and other technological advances, the opportunity exists to redesign the financial reporting system to deliver the type and level of information that investors need to access their preferred indicators of company performance.”
The advisory committee will begin its work after additional members are named and the SEC staff files the committee’s charter with Congress.