This is the first in a series of surveys on corporate finance. In coming issues, we will be asking CFOs about practices in auditing, investment banking, and corporate governance.

1. What is your title?

• CFO or Finance Director: 19%
• EVP or SVP of Finance: 4%
• VP of Finance: 18%
• Director of Finance: 31%
• Controller: 19%
• Other: 9%

2. What were your company's (or business unit's) approximate revenues for the most recently completed fiscal year?

• Less than $99M: 4%
• $100M to $499M: 15%
• $500M to $999M: 15%
• $1B to $4.99B: 27%
• $5B to $9.99B: 13%
• $10B to $19.99B: 12%
• $20B to $29.99B: 6%
• More than $30B: 8%

3. Have you disclosed more information in your financial statements during the past three months?

• Yes: 59%
• No: 41%

4. Where did such additional disclosure take place? (Based on those who answered "yes" to question 3.)

• Income statement/balance sheet: 9%
• Footnotes: 72%
• Both: 19%

5. Will you disclose more information during the next 12 months?

• Yes: 57%
• No: 43%

6. Where will such additional disclosure take place? (Based on those who answered "yes" to question 5.)

• Income statement/balance sheet: 12%
• Footnotes: 70%
• Both: 18%

7. What percentage of your debt or other liabilities is not reflected on your balance sheet?

• None: 73%
• 25% or less: 20%
• More than 25% but less than 50%: 4%
• 50% or more: 3%

8. Do you use special-purpose entities to achieve that result? (Based on those who did not answer "none" to question 7.)

• Yes: 61%
• No: 39%

9. Do you guarantee or otherwise protect the investment of third parties in such entities? (Based on those who did not answer "none" to question 7.)

• Yes: 42%
• No: 58%

10. How much of your off-balance-sheet debt would you have to consolidate if, as expected, FASB increased the minimum level of investment required by a third party from 3 percent to as much as 10 percent? (Based only on those who did not answer "none" to question 7.)

• None: 71%
• Some: 21%
• Most or all: 8%

11. Do you report pro forma results in your quarterly earnings press releases?

• Yes: 54%
• No: 46%

12. What items do you typically exclude from EPS as calculated under U.S. GAAP? (Based only on those who answered "yes" to question 11. Check all that apply.)

• Goodwill charges: 41%
• Restructuring charges: 67%
• Gains or losses on asset sales: 29%
• Pension gains or losses: 10%
• Other: 21%

13. Do you reconcile your pro forma results to U.S. GAAP? (Based only on those who answered "yes" to question 11.)

• Yes: 82%
• No: 18%

14. Will you continue to use pro forma results in your quarterly releases during the next 12 months? (Based only on those who answered "yes" to question 11.)

• Yes: 93%
• No: 7%

15. How often have you felt pressure from your company's CEO to misrepresent its financial results during the past five years?

• Never: 83%
• Once: 4%
• Twice: 1%
• Three times: 1%
• More than three times: 11%

16. How often have you engaged in aggressive accounting practices during the past five years?

• Never: 93%
• Once: 1%
• Twice: 1%
• Three times: 0%
• More than three times: 7%

17. How often have your accounting practices violated U.S. GAAP during the past five years?

• Never: 95%
• Once: 1%
• Twice: 1%
• Three times: 0%
• More than three times: 4%

(Total exceeds 100% due to rounding.)

18. What did such practices involve? (Check all that apply.)

• Reserves: 63%
• Revenue recognition: 33%
• Business combinations: 21%
• Fixed assets: 21%
• Investments: 17%
• Leases: 13%

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