房地产销售好做吗The 'Numbers Game'
倒车技巧Levitt Jr., Arthur. CPA Journal, Dec98, Vol. 68 Issue 12, p14, 5p
Seven months ago, I expresd concerns about lective disclosure. Through conference calls or embargoed press releas, analysts and institutional investors often hear about material news before it is made public. In the interval, there is a great deal of unusual trading. The practice had been going on for a long time. And, while everyone was aware of it, and most were extremely uncomfortable with it, few spoke out. As the investor's advocate, the SEC did, and we will continue to do so.
Well, today, I'd like to talk to you about another widespread, but too little challenged, custom: earnings management. This process has evolved over the years into what can best be characterized as a game among market participants. A game that, if not addresd soon, will have adver conquences for America's financial reporting system. A game that runs counter to the very principles behind our market's strength and success.
Increasingly, I have become concerned that the motivation to meet Wall Street earnings expectations may be overriding common-n business practices. Too many corporate managers, auditors, and analysts are participants in a game of nods and winks. In the zeal to satisfy connsus earnings estimates and project a smooth earnings path, wishful thinking may be winning the day over faithful reprentation.
As a result, I fear that we are witnessing an erosion in the quality of earnings, and therefore, the quality of financial reporting. Managing may be giving way to manipulation; integrity may be losing out to illusion.
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Many in corporate America are just as frustrated and concerned about this trend as we, at the SEC, are. They know how difficult it is to hold the line on good-practices when their competitors operate in the gray area between legitimacy and outright fraud. A gray area where the accounting is being perverted; where managers are cutting corners; and, where earnings reports reflect the desires of management rather than the underlying financial performance of the company.
校园画图片大全Integrity in financial reporting is under stress, and I want to explore five of the more common accounting gimmicks we've been eing. Later, I will outline a framework for a financial community respon to this situation.
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This necessary respon involves improving both our accounting and disclosure rules, as well as the oversight and function of outside auditors and board audit committees. I am also calling upon a broad spectrum of capital market participants, from corporate management to Wall Street analysts to investors, to stand together and reenergize the touchstone of our financial reporting system: transparency and comparability.
孙的成语This is a financial community problem. It can't be solved by a government mandate: It demands a financial community respon. 眼睛视力表
The Role of Financial Reporting in Our Economy
Today, America's capital markets are the envy of the world. Our efficiency, liquidity, and resiliency stand cond to none. Our position, no doubt, has benefited from the opportuni
ty and potential of the global economy. At the same time, however, this increasing interconnectedness has made us more susceptible to economic and financial weakness half a world away.
The significance of transparent, timely, and reliable financial statements and its importance to investor protection has never been more apparent. The current financial situations in Asia and Russia are stark examples of this new reality. The markets are learning a painful lesson taught many times before: Investors panic as a result of unexpected or unquantifiable bad news. If a company fails to provide meaningful disclosure to investors about where it has been, where it is, and where it is going, a damaging pattern ensues. The bond between shareholders and the company is shaken; investors grow anxious; prices fluctuate for no discernible reasons; and the trust that is the bedrock of our capital markets is verely tested.
The Pressure to "Make Your Numbers"
While the problem of earnings management is not new, it has swelled in a market that is
冬眠动物有哪些unforgiving of companies that miss their estimates. I recently read of one major U.S. company that failed to meet its so-called "numbers" by one penny and lost more than six percent of its stock value in one day.
