Alix Stuart, CFO Magazine
September 1, 2006

The road to hell...

I don't clearly understand this swing of the pendulum. I got it when SOX was heralded as the panacea for corporate governance, even though I believe it instills an unwarranted sense of security. Still, I understood why they did it - if corporate America was to be trusted, we needed a framework within which to keep them in check. But to now suggest we relinquish the "code" in favor judgement and (dare I say it) "reasonableness" seems like a fast lane back to abuse. (and this from a former CFO of a public company).

Posted by Nick Visco | Sep 8, 2006 5:00 PM ET

Standing on Principles

Standing on Principles


In a world with more regulation than ever, can the accounting rulebook be thrown away?

Alix Nyberg Stuart, CFO Magazine

September 01, 2006
As Groucho Marx once said, "Those are my principles, and if you don't like them...well, I have others."
With the regular bills passed to become acts and then these practised on shown that we are still on track. I see no reason that we have got to fallow others and say ?We are lost professionally?. No. We are not. We have come from the very long way to tighten lots of bolts and nuts it the finance end economises. One time Malthusian is proving wrong. Why? No fore sight. We are qualified enough to say that we have to know hoe and navigate in the right direction. We have other who also are with us to correct the wrong doings.
We have to stand on principals. Please delayed is plea guilty.

Posted by Firozali A Mulla | Sep 8, 2006 9:12 AM ET

CEO/CFO or judge

The biggest difference between principles based accounting and detailed rules is who makes the decision. If a judge (or SEC or some other body) can overturn a decision, then principles devolve into rules (which may be in the form of precendent decisions). Decsions then are made based on trying to guess what the judge will rule to be right.

Posted by Roland Cycan | Sep 6, 2006 10:17 AM ET