Fortifying the Close-to-Disclose Process

 

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The close-to-disclose process will continue to grow more burdensome as will the pressure on the reporting staff. While more speed and less cost are indeed compelling targets for repair, these goals should not be pursued without a step back and a good look at the bigger picture. Finance must ensure excellence in corporate reporting on all levels. One must keep in mind the purpose of reporting: to assist in the effective functioning of the market economy by enabling shareholders, investors, and other stakeholders to assess the overall performance of a business and to establish its current and future value. This core mission falls apart if shareholders and other stakeholders cannot rely on the quality of the information produced.