Today in the business world, as important as the companies operations, is the information they provide. We live in a “information world”, and in the case of businesses, financial information is critical. Through it, millions of people throughout the world taking investment decisions, either directly or indirectly (investment and pension funds, for example). Failures, mistakes and wrong perceptions in this area can have a huge impact in businesses, but also in the economy, as we can see nowadays.

This other lingua franca of the business (financial reporting standards) should be known by executives and companies and is the reason why business schools dealing with an issue so sensitive to businesses. As I often say in my classes, financial accounting is not a mere mechanic and administrative process, as it was thought for years. Financial accounting is the basis of the financial reporting system, a strategic tool for companies for interacting with the markets and the society.

The business schools have much to contribute in the debate on financial reporting standards and in the financial reporting system that is creating at the international level. On one side, is the academic component, reflection and research that enables new ideas. On the other, business schools have a clear link to the corporate world and different stakeholders, which can not be alien to the development of this whole matter.

About the role of stakeholders in this process, we have two recent examples with analysts and auditors. A few weeks ago, a study by PwC in different countries showed how analysts feel about financial reporting and the information provided by companies (Corporate reporting: is it what investment professionals expect? ) The analysts feel very foreign to the development of the framework of financial information and want to be involved. Another recent contribution to this debate, is the document, promoted by CEOs of the big audit networks, just published at the Global Public Policy Symposium (Global dialogue with capital markets stakeholders)

Along with analysts or auditors, other agents such as, financial executives, rating agencies or the markets themselves, they must engage in a process that involves a turning point in financial reporting. The business schools are an exceptional platform, with the cooperation of the various stakeholders involved, to promote the discussion, propose new ideas and best practices to foster transparency and comparability of financial reporting .