JICPA Releases "Key Issues in Enhancing Usefulness and Trust in Corporate Disclosure - Establishing Sustainable Value Creation Cycle through Interaction between Disclosure and Governance -"
In recent years, there is growing interest in the quality of non-financial information as the importance of non-financial information in corporate reporting has been rapidly increasing.
The Japanese Institute of Certified Public Accountants (JICPA) established the Special Committee on Corporate Disclosure and Governance in September 2019. The committee, with the participation of investors and independent directors as external experts, identified issues to be addressed to improve the usefulness and reliability of corporate disclosure and discussed the direction to be taken to address such issues. The discussion was predicated on corporate information required by capital providers in capital markets, i.e., investors, and based on the idea that it is important for corporate disclosure to enable entities to sustainably create value through an organic connectivity with corporate governance, while increasing its value to information users by enhancing its usefulness and reliability. Furthermore, the committee also discussed the roles to be played by certified public accountants to support and safeguard the disclosure system.
JICPA published the Interim Report on August 21, 2020 and we conducted interviews with experts such as business professionals, investors and academics and received feedback on topics discussed in the Interim Report. In addition, in light of the heated discussions on non-financial reporting, especially internationally, the necessary updates were made in this Final Report in terms of information considered to have significant impact.
We confirmed our commitment to enhance the perspective of certified public accountants on the disclosure of non-financial information and promote efforts to improve the usefulness and reliability of corporate disclosure.