NACD Audit Committee Chair Advisory Council: Next-Generation Financial Disclosures
In brief: Amid growing complexity of corporate financial statements and initiatives by regulators and standard-setters to improve the effectiveness of disclosures, a recent meeting of the NACD Audit Committee Chair Advisory Council focused on next-generation disclosure, based on lessons learned from General Electric’s revamp of their 10-K statement. The discussion covered the following topics:
- Using the 10-K as a strategic document
- Improving readability and utility of disclosures
- Aligning the 10-K with other company communications
- Extending the value of disclosures to traditionally “passive” stakeholders
- Becoming an advocate for more meaningful disclosures
This brief includes a list of questions from NACD and meeting co-hosts KPMG and Sidley Austin that audit committee members can ask management regarding improved disclosure.
This resource can help your board:
- Understand how to tell the company’s story in financial statements.
- Consider changes to financial statements that allow the company to comply with existing disclosure standards.
Most relevant audiences: Audit committee members, general counsel