Aording to an article written by Mohini Singh on the Institute webite,allowing small US public panies to use “simplified”reporting standards available to private panies will make analysing and therefore investing in those firms harder,not easier.

In its 2015report titled “Addressing Financial Reporting plexity:Investor Perspectives“,the CFA Institute made it clear that investors will not wele potential changes to US aounting rules that,while rcing pliance sts,will unnecessarily plicate the task of valuing firms.

Singh’s article this week was apparently prompted by proposals being mooted by the US aounting standards setter,FASB,which might allow smaller listed rporates to use simplified aounting standards that are today only available to private panies.Singh argues that since the aounting standards for private panies are not grounded in the same principles as those for public ones,in which the needs of public investors are at the forefront of the standards making process,any such change may be unterproductive.Apart from anything else,analysts having to work out which rules apply and how they impact a pany’s valuation would be an unwele plication in an already plex task.

The issue is likely plicated by the omnibus bill being nsidered by the new US ngress –the CHOICE Act,which seeks to remove a significant number of the “post crisis”regulations imposed on financial services firms by the Dodd Frank Act.Buried within that legislation are proposals to remove structured data reporting obligations on smaller public panies.

The CFA’s 2015paper points out that nsistent,universal reporting obligations are an important part of creating a level playing field for panies seeking capital and investors looking to place their capital.

Find out more in Mohini Singh’s blog post and then dive into the detailed remendations on rporate reporting simplification here.

中文新闻：简化小型上市公司报告要求不利于对其投资