By AccountingWEB: The goal of the 2002 Sarbanes-Oxley Act was to make corporate accounting more transparent. In practice, a new Cato Institute study finds, the law's requirements have had the opposite effect.
Sarbanes-Oxley sought to achieve its aims by having the Financial Accounting Standards Board (FASB) mandate that corporations use Generally Accepted Accounting Principles (GAAP) in reporting their balance sheets to shareholders. In the Cato Institute Briefing Paper FASB: Making Financial Statements Mysterious, T.J. Rodgers explains why the GAAP rules complicate financial statements to the point where even CEOs have trouble reading them.
Read complete article Sarbanes-Oxley Requirements Have Made Financial Statements More Confusing
Source: AccountingWEB, 26 August 2008. Copyright © 2008 AccountingWEB, Inc. All rights reserved.
