The FASB has implemented changes to enhance transparency in financial reporting for Troubled Debt Restructurings (TDRs). These changes provide clearer financial information, improve transparency in statements, and contribute to greater accountability in the industry.
The complexities of goodwill impairment often present a challenge for companies. During a business combination, the excess of the amount of consideration paid by an acquirer and the net asset’s fair value of the acquiree is known as goodwill. When the value of the net asset of a reporting unit declines, goodwill impairment may have occurred.
As ESG requirements evolve, companies find the supply chain as an emerging critical area. The increased focus on sustainability requires companies to look closely into product/service design and manufacturing processes, the materials and services they use, and how their products travel through the supply chain.
It is vital to understand the financial and legal risks revolving around environmental considerations that any company may face. Sufficient understanding allows a company to develop an appropriate business plan for sustainable value creation and growth.
In today’s business landscape, it’s no longer enough for companies to focus solely on financial performance. Environmental, social, and governance (ESG) considerations are becoming increasingly important for investors and other stakeholders. As a result, ESG reporting is becoming a crucial aspect of corporate reporting.
Transparency is no longer an option, but an imperative in today’s business landscape. Trust is vital for success and transparency plays a crucial role in building it. Forbes defines Business Transparency as being honest about various company operations such as performance, revenue, internal processes, sourcing, pricing, and values. It is a critical tool for sustained growth in any industry.
