TS Insights: How the economic slowdown leads to added financial reporting complexities

TS insights: financial reporting introduction
Download How the economic slowdown leads to added financial reporting complexities

While financial reporting can be complex even in the best of times, many transactions and the attendant reporting issues can be even more daunting during troubled economic times and the recovery period that follows. Some transactions just aren't all that frequent during normal cycles. For others, the accounting is highly sensitive to market volatility and illiquidity.

Lastly, without transparent advance warnings, impairment charges may serve as surprise signals to the market that troubled water is deeper than expected. Given these and other complexities, and general market sensitivities to reported results, financial reporting during a recession and the post-recession recovery period warrants management's close attention.