Increased disclosure requirements and
complexity of financial statements have started to hinder the
purpose of financial reporting, according to Baker Tilly
International chairman Jim Castellano.

At the network’s annual North America
conference, Castellano said the number of disclosures has ballooned
in recent years with companies and governments required to provide
more financial information.

“This additional complexity is hindering the
very purpose of financial reporting – to provide shareholders,
creditors and other users with useful information. The profession
needs to stand back and make financial reports simpler and easier
to understand,” he said.