Efforts in recent years to strengthen financial reporting have resulted in improvements in corporate governance and in the process of preparing and auditing financial reports, but not in making financial reports more understandable, according to a new study.

The International Federation of Accountants surveyed 340 participants from various sectors for its report, Financial Reporting Supply Chain: Current Perspectives and Directions, including investors, preparers, company management and directors, auditors, standard-setters, and regulators.

The survey participants recommended improving communications among participants in the financial reporting supply chain, and producing relevant, reliable and understandable financial and business information. They also suggested including more business-driven information in financial reports and promoting the use of technology to enable users to compile their own information.

"Despite the strengthening of the financial reporting process and the many improvements made, there is still much to be done to meet the needs of investors and other stakeholders," said Norman Lyle, chair of the Financial Reporting Supply Chain Project, in a statement.

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