ACCA has consistently stated that the view of investors should be at the heart of standard-setting and financial policy-making. Too often their voice is not heard as rules are being made or proposals formulated.
But who exactly are the investors? How have their asset allocations and investment strategies changed since the Global Financial Crisis? And, of most direct interest to accountants, what do they want from corporate reporting?
ACCA is undertaking in 2013 a four-stage project examining the UK and Ireland investor landscape, post-GFC and the first two reports, based on interviews with key players and a survey of 300 investors, carried out concurrently, reveal trends of far greater international application.
Some of the investment trends include: short-termism, changing nature of company ownership, low interest rates, higher appetite for risk, and higher regulation.
The corporate reporting headlines include a worrying decline in trust in company information; criticisms of the annual report, varying views on the value of quarterly reporting, and a boost for the reputation of external assurance.
These two reports provide a compelling insight into changing investment behaviours and how corporate reporting is going to have to evolve to cope with this.