FINANCIAL REPORTING
A recent study by the Financial Executives Institute says
the overall quality of corporate financial reporting is high, with
relatively isolated, but significant, deficiencies. For example, in
2000, the earnings restatements of only 10 companies caused almost the
entire decline in market value ( www.fei.org/download/QualFinRep-6-7-2k1.ppt
).
New forms of deceptive financial reporting are misleading
investors, according to SEC Commissioner Isaac C. Hunt, Jr., who also
says the agency is monitoring the effects of regulation FD on
corporate disclosure and will, if necessary, amend the rule to
stimulate the flow of information to the public ( www.sec.gov/news/speech/spch497.htm
).
