Ipsita Rout, KIIT SCHOOL OF LAW, KIIT UNIVERSITY
Abstract
Information is everything in the contemporary world. And without it, every decision is baseless. John Smith once said that one should, always keep one foot in the past, your head in the present, and your eyes to the future. In this paper, we shall be discussing the corporate reporting regime of Forward-Looking Information or Statements nationally and internationally. Backward-looking information or past information is not sufficient for investors to make an informed and economic decision with respect to investment. Whereas forward looking information is the backbone of effective decision-making in the capital market. Voluntary disclosure of forward looking information is an indication of transparency, reliability, and integrity of a company. It is based on these factors that an investor will assess the credibility of a company and invest their funds.
This paper is divided into six segments. Firstly, the introduction where we will understand what Forward-Looking information all is about. Secondly, the importance of forward-looking information in the contemporary economic world. Thirdly, the need for regulation in information sphere with regards to FLI. Fourthly, we shall scrutinise the United Nations Conference on Trade and Development to understand the gaps and seek recommendations from present models or practices in the world. Fifthly, we shall investigate the Indian context of the debate and understand the gravity of urgency for regulatory approaches. And lastly, the empirical research on Annual reports of top NIFTY-50 companies to measure the situation with our understanding of the concept and ending with recommendations and conclusion.
Keywords: Forward-looking Information, United Nations Conference on Trade and Development, Indian regulatory approaches, Annual reports on NIFTY-50.
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