Deloitte question EU transparency directive

A leading accountant has questioned whether the move to quarterly reporting by listed companies would actually lead to improved corporate governance or improve confidence in financial information.

The initiative has been proposed by the European Commission directive on business transparency.

Brendan Jennings, a partner with Deloitte said that the shift from half-yearly reporting to quarterly reporting will force companies to invest more resources in financial reporting which may yield some benefits.

However, he warned that there was a danger that short-term decisions would be made and short term planning engaged in by those companies which, in the long-term, would not be in the best interests of those companies or their shareholders.

Jennings was speaking today at the Deloitte Financial Reporting Seminar which took place in Dublin was attended by over 200 financial managers.