FINANCIAL REPORTING: AN INTERNET CLEARINGHOUSE

Max M. Gottlieb, Boris Stavrovski

Abstract

The creation of accounting transactions has been changed from a manual to computerized recording. In many operational applications the accounting entries are generated as a byproduct of the underlying transactions (such as sales), thus making it possible to shorten the existing delays in creation of accounting data. Under this method it is possible to issue financial statements monthly or weekly, as opposed to the presently used quarterly and annual periods. Many corporations already generate such financial reports for their internal use, but not for external purposes. Corporations provide the Security and Exchange Commission (SEC) with more detailed and supplemental information, in addition to the financial reporting, including sales of their stocks by their officers. Corporations also disclose substantial facts in their press releases and conferences with financial analysts. They are obligated to disclose this information to their shareholders. But how to do it quickly and in a way that small investor could obtain this information at the same time as the institutional investors? It would be advisable to distribute financial reports via an electronic clearinghouse. This method would permit an instant access to the reports and assure that these documents cannot be modified. In the following paragraphs we will review the existing reporting frequency contrasting them with the needs of investors, and describe the generation of accounting transactions. Next, the proposed method of collection and distribution of financial reports as well as their possible analyses by a central electronic clearinghouse will be discussed. Finally, we will explore the need for changes of the attestation standards, describe how to assure the integrity of distributed electronically financial statements, and propose sequence of implementation of the new distribution.

References

  1. Markoff, J., 1991. Adobe Tackles the Paper Glut With a Software for All Systems, The New York Times, December 22, p. 9
  2. Morse, S., 1995. Networks: How to Stay Ahead of Network Explosion, Network Computing, February 15, pp. 54-63
  3. Passell, P., 1992 “Fast Money," The New York Times Magazine, October 18, p. 42-75
  4. Rifkin, G., 1995. The Future of the Document, Forbes ASAP, October 9, pp. 42-51.
  5. Stein, D., and Rittenberg, L., 1994. Electronic Data Interchange Systems: Implications for Audit Evidence as a Prelude to Re-engineering the Audit Process, Unpublished paper.
  6. Weiss, M.J., 1994. The Paperless Office, Journal of Accounting, November, pp. 73-85
  7. Zarowin, S., 1995. Motorola's Financial Closings; 12 Nonevents a Year. Journal of Accounting, November, pp. 59-62.
  8. Barton, K. E, 2003, XBRL: Extensible Business Reporting Language, The Trusted Professional, Vol.8, Sept. 9, p. 15
Download


Paper Citation


in Harvard Style

M. Gottlieb M. and Stavrovski B. (2004). FINANCIAL REPORTING: AN INTERNET CLEARINGHOUSE . In Proceedings of the Sixth International Conference on Enterprise Information Systems - Volume 4: ICEIS, ISBN 972-8865-00-7, pages 397-402. DOI: 10.5220/0002602703970402


in Bibtex Style

@conference{iceis04,
author={Max M. Gottlieb and Boris Stavrovski},
title={FINANCIAL REPORTING: AN INTERNET CLEARINGHOUSE},
booktitle={Proceedings of the Sixth International Conference on Enterprise Information Systems - Volume 4: ICEIS,},
year={2004},
pages={397-402},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0002602703970402},
isbn={972-8865-00-7},
}


in EndNote Style

TY - CONF
JO - Proceedings of the Sixth International Conference on Enterprise Information Systems - Volume 4: ICEIS,
TI - FINANCIAL REPORTING: AN INTERNET CLEARINGHOUSE
SN - 972-8865-00-7
AU - M. Gottlieb M.
AU - Stavrovski B.
PY - 2004
SP - 397
EP - 402
DO - 10.5220/0002602703970402