Detail Hazy Reporting   Oleh:  Luehfing, Michael S. ; Vallario, Cynthia Waller ; Phillips, Thomas J., [Jr.] Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 194 no. 2 (Aug. 2002), page 47-54. Topik: REPORTING; hazy reporting Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.15 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel One look at the business pages proves that pro forma financial reporting is on the rise. But there’s a right way and a wrong way to use pro forma numbers. When a company uses such information correctly, it helps investors understand its financial performance. Or it can use pro forma results incorrectly - for example, to hide earnings losses from shareholders and analysts. Such actions obscure the truth and ultimately have the potential to undermine the integrity of the financial markets. When companies engage in financial shenanigans, investors first point their fingers at management. But hazy financial reporting can jeopardize the credibility of the accounting profession because the public also may associate ambiguous and inaccurate financial information with corporate CPA s and external auditors. Thus corporate CPA s who provide the numbers for earnings press releases, as well as auditors who may review earnings reports with their clients before publication, must ensure that companies disclose transparent, high - quality financial information. In light of recent financial reporting scandals, it’s clear CPA s should step up to the plate to make sure companies don’t report earnings from a biased, inflated perspective. Contrary to what it requires for audited financial statements, the SEC advises companies only that the information in their earnings releases should not mislead. There currently are no substantive authoritative guidelines to help a CPA determine when pro forma information is deceptive. Both corporate CPA s and external auditors should ask questions if they think a company is selectively editing its earnings reports, understand the problems with inappropriate pro forma reporting and ensure that financial managers release pro forma information in a balanced way, closer to GAAP - based financials (according to interim guidelines issued by FEI / NIRI and SEC staff recommendations). Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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