Reducing complexity: Our proposal to address this challenge
Point of view
- Complexity imposes costs on both investors and companies for information that is often neither easily understood nor particularly useful.
- Opportunities exist to maintain, or even increase, the quality of accounting standards while reducing complexity.
- A standing advisory committee to the board should be created. Its objective should be to advise the board on how to reduce complexity while maintaining quality and improving the usefulness of financial reporting for investors.