News Article - 23 November 2007
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It is becoming increasingly difficult to fully understand company financial statements, claims the Chartered Institute of Management Accountants (Cima).

Chief executive of the institute Charles Tilley expressed a number of concerns over financial reports at Cima's annual conference, reports Accountancy Age.

He claimed that companies are only putting 20 per cent of their assets on their balance sheets and that statements are becoming more complex, hindering investors' understanding of reports.

"Reports were all about creating value in the past, but the existing model does not provide that," he said.

Mr Tilley also called for more disclosure on business cash flow, an opinion backed up by PricewaterhouseCoopers (PwC).

Janice Lingwood, director of PwC, commented that investors find it hard to understand financial statements as "important information can be buried very deep in reports".

Cima claims to represent 158,000 students and members in over 160 countries, making it one of the largest international accountancy bodies.

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