Financial Reporting: What's Really in the Eyes of the Beholders?

Formatting and presentation of financial statements has become a hot issue as poorly rendered information and misleading disclosure practices seriously impact on creditors and investors. A trailblazing team of researchers from the University of New South Wales and the University of Canberra has developed a way to show what counts by using eye tracking to determine exactly where people focus when reading financial information. Their research may prompt yet more changes to accounting standards and disclosure requirements, but experts argue one crucial point that definitely cannot be overlooked remains the need to ramp up financial literacy for everyone from company directors to mum-and-dad investors.