The 'Carrot' Approach to Accounting Standard Setting Academic Article

abstract

• In December 2006, Conrad Hewitt, the chief accountant at the Securities and Exchange Commission (SEC), promised that the issue of complexity in accounting would be addressed early in 2007 and would be a leading focus of work by his office in 2007. The goal in financial reporting is to disseminate transparent, understandable, financial information that fairly presents the financial condition of the reporting company. Oftentimes, however the information public companies disseminate is overly complex, quagmired in legalistic form at the expense of true economic substance, and is devoid of conveying true, meaningful and understandable information regarding the company. In this regard, the SEC, in conjunction with the Financial Accounting Standards Board (FASB), is making an attempt to remedy this problem by exploring ways to simplify the fragmented and complex accounting regime currently in existence. The goal of this Article is to highlight one aspect of this reform effort that must be addressed to insure success of the SEC's stated objective of a more simplified accounting and financial reporting system. The aspect in question is management and its role in the accounting and financial reporting process.

authors

• Newman, Neal

published proceedings

• University of Miami Business Law Review

author list (cited authors)

• Newman, N. F

complete list of authors

• Newman, Neal F

publication date

• July 2008

publisher

• University of Miami School of Law  Publisher

published in

• University of Miami Business Law Review  Journal

keywords

• Accounting Fraud
• Accounting Standards
• Enron
• Financial Reporting
• Finincial Statements
• Incentive-based Compensation
• Leases

URI

• https://scholarship.law.tamu.edu/facscholar/312

start page

• 227

end page

• 277

volume

• 16

issue

• 2

URL

• https://scholarship.law.tamu.edu/facscholar/312/