The decision-usefulness of financial reports and the future of (financial) reporting

Abstract

This report details the policy implications of these findings and provides recommendations about the future direction of financial reporting. In particular, based on the findings documented in the previous four reports the following recommendations are provided: 1. To prescribe the inclusion of subtotals such as EBIT and EBITDA into the statement of financial performance to enhance its informativeness; 2. To permit the continued disclosure of firm and industry-specific non-GAAP performance metrics, with regulators to consider a framework offering guidance on the preparation and salience of these alternative performance metrics within firm disclosures; 3. To foster Australian firms adoptin..