A new world of financial

reporting does not only modify how internal and external stakeholders view the financial statements, but has also changed how accountants in all sectors function in today’s contemporary environment. There has been a heightened level of communicate valuable information to various stakeholders.

For private accountants, the new world of financial reporting will not only entail an understanding of the usual reporting process. Private accountants should have an in- depth comprehension of the business and how various decisions will be reflected in the financial statements, thereby becoming a valuable partner in the success of the business.

External auditors, on the other hand, will need to enhance their procedures and capabilities to validate not only the numbers, but also the use of sound judgment in preparing the financial statements. An enhanced level of professional skepticism is required to complement the exercise of sound judgment.

Regulators, too, will have a substantial role in molding this new world of financial reporting. The regulatory supervision in ensuring that the new standards will be implemented consistently and properly across companies and industries is vital to achieving this cause.

Academicians also play a vital role in shaping the new world of financial reporting— being the educator of future private accountants, external auditors, and regulators. Education should also extend beyond importance of holistic analysis of financial reporting ( i. e., a result of coordinated effort, from business decisions to end results, of everyone within the

The financial reports for the year ending December 31, 2018 will be different from previous years. While some may think of the new reporting standards as burdensome in terms of implementation, such change is required for better business decisions in the future.

The world of financial reporting has changed; it has evolved. We must be willing to take on the challenge of being more transparent in our financial reports to properly represent the impact of our decisions on future risks and returns. Simply put, past results will not always perfectly guide future performance, but future expectations from current business decisions will provide more valuable insights into how risks can be managed and how returns can general purpose financial statements have been repurposed, are you ready for the new world of financial reporting?