Human capital development is one of the key factors in human development in which the government and the private sector plays a critical role
More than 2/3 of the world’s capital markets are using the IMA supported XBRL global structured data format for both financial and nonfinancial disclosures. More than 100 regulators in more than 70 countries have mandated the use of XBRL for financial and business reporting which includes financial, tax or government data used to drive both the capital markets and government services
Forum for Sustainable and Responsible Investment. Clearly, capital market interest is there for non-financial information disclosures and the largest US Companies are disclosing this information -- but yet we don't see the US SEC taking any actions to meet this capital markets demand
Great article from Dechert LLP law firm about the specifics of the European Financial Transparency Gateway (EFTG): The European Commission, as part of its efforts to create a “Digital Single Market” and further to build more competitive and innovative Capital Market Union, announced its FinTech Action Plan on March 8, 2018.1 The Action Plan sets out 23 steps to accomplish the following main objectives: enabling innovative business models to reach a European scale (based on a consistent licensing regime), supporting innovations and implementation of new technologies in the financial sector, and increasing its integrity and security.
But what can the capital markets do to both minimize public company risk and create a mechanism to provide funding to support new solutions created in the private sector to deal with this growing crisis?
Likewise, companies have increased their commitments to ESG: Ceres research shows that among that 600 largest public companies, “nearly two-thirds have commitments to reduce greenhouse gas (gHg) emissions, half are actively managing water resources and nearly half are now actively protecting the human rights of their employees by disclosing human capital data in its financial statement reports as well
For more than 10 years – the US SEC has been using the XBRL data format for machine-reading of US Public Company Financial Statements as well as the US FDIC for US Bank Call Reports to support better transparency and accountability of the capital markets. The US SEC is now positioned to build-out the use of XBRL across the US capital markets .
Approximately 1 in 5 investment dollars in the USA is going to sustainability finance but we are not hearing any action by the US SEC to support this capital markets efforts to provide better transparency and accountability. New technologies and innovations in the capital markets will be needed to address this global crisis – but we are not hearing anything on behalf of the world’s largest regulator on this topic. This also includes human capital data disclosure by companies including gender pay and pay ratio data including composition of boards of directors.
But, on the flip-side, for the capital markets – public companies are requested to submit their financial information to the US Securities and Exchange Commission in a machine-readable format for instant data analytics using XBRL to detect fraud or financial irregularities.
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