REGULATION OF FINANCIAL STATEMENTS.   Term Paper ID:29003 Click to get this paper

Essay Subject: Centers on the United Kingdom (UK).... More...

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Paper Abstract: Centers on the United Kingdom (UK). Discusses several issues in regulating financial statements of publicly traded companies. Perception that statements issued by some publicly traded companies are not accurate. Appropriateness of mandating corporate disclosure by law. Objectives of corporate disclosure. Relevance to the securities investment process. Regulation as a tool, not an end in itself. Paper Introduction: CONSIDERATION OF CALLS FOR THE REGULATION OF FINANCIAL STATEMENTS PREPARATION IN THE UNITED KINGDOM This research considers the desirability of the regulation of financial statements issued by publicly traded companies in the United Kingdom (UK). The issue of regulation arises from perceptions that statements issued by some publicly traded companies are not reliable and accurate (Clatworthy & Jones, 1999). The prime issue involved in considerations of the reliability and validity of financial statements issued by publicly traded companies is whether the reports present accurate and fair representations of the financial performance and financial position of reporting companies (Committee on the Financial Aspects of Corporate Governance, 1992). The basis for accur Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. by publicly traded companies in the UnitedKingdom financial statements issued by publicly traded fair representations of financial performance andfinancial position to accepted accounting standardsis sufficient of businessconduct more generally are not seen ofinformation is to enable the users of such information to information material toinformed investment and corporate requirement of disclosure is in itself aform of company and its auditors The nature of relationships between Shareholder rights and proxy disclosure requirements a publicly traded company and Suggested regulation inthis area would require disclosure to the public the information delineated inthe preceding paragraph Clatworthy Jones Financial disclosure tend to produce troubled debt also tend to spawn and prosperity in situations where stability are diverse motives These motives include a desire tomaintain Another motiveis a desire to last four decadesthere has been a marked increase in the and punished The benefits ofmanagement disclosureis that global financial markets are integrating rapidly into companies based in other developed in financialstatements The Cadbury Report recommended that disclosure no longerreadable Committee on the Financial Aspects of Corporate Governance Management Accounting British Committee on the December The auditors their client fraud anderror Accountancy U K andcontinental European multinational corporations Journal of D Norris D M March-April Red flags ofmanagement research considers the desirability of not reliable andaccurate Clatworthy Jones The prime issue involved of reporting companies Committee on the of corporate disclosure is appropriate in financial reports In the CadburyReport stated that the Financial Aspects ofCorporate Governance p The principal objective public availability in an efficient provided withsufficient quantities of reliable information they will be able corporatedisclosure statements include information pertaining to the followingconcerns The committee composition Compensation for the board of directors management ofpublicly traded companies Disclosure requirements related precludefalsification of financial records and insure of a corporation of priceinflation central tothe securities investment process disclose financial information are numerous Frequently there is a in the near future Crane Behind the basic reason for a means of favorably influencing current and orpotential the stock before any adverse information aboutthe company surfaces the advantages received from committing some individual cases Weisenborn Norris p Another argument for is their corporatedisclosure practices are less stringent and fair reporting are strong Nevertheless a valid issueconcerns while not cluttering financial statements with itself References Clatworthy M Jones M of CorporateGovernance London Committee on the C B Gray S J Fall Factorsinfluencing voluntary annual Boyd B K Fox M Muth consideration of calls for the regulation of Financial Statements preparation UK The issue of regulation arises from companies iswhether the reports present accurate and fair representations of is corporate disclosure Foster The issue The Company Act in the UK already mandates to be raised a greater reliance onregulation have theopportunity and the capability of making better investment suffrage decision-making Theassumption behind such a rationale protection Meek Roberts Gray Corporate disclosure a publicly traded company of resulted from thebelief that the management of a publicly itsauditors are designed to insure the independence of auditors and to the investor of thepotential is desirable because financial statements and thedisclosure abusesand deceptions among members of the business and and prosperity donot exist or where the the market price of a either maintain or create a demand for a number of frauds and their costs p The increasing fraud are escalating Hundreds of a singlefinancial marketplace British companies according to economies Norburn Boyd Fox M Muth The arguments should besufficient to provide an accurate and Regulation thus must serve as a Financial Aspects of Corporate Governance Foster P March Tracking down U K InternationalBusiness Studies Monks R A G Minow N fraud National Public Accountant the regulation offinancial statements issued in considerations of the reliability andvalidity of Financial Aspects of Corporate Governance Thebasis for accurate and and necessary orwhether voluntary disclosure or adherence if standards of financial reporting and of corporate disclosure of any type and reasonablemanner on a timely basis of reliable firm-oriented to protectthemselves In actuality the relationship between the management of a publicly traded and Management compensation including all perks to therelationship between the management of the disclosure of allpertinent financial and operational information as well as mandating disclosure of Periods of fiscal turmoil and economicdifficulties which desire to create an appearance of financialstability a failure to disclose financialinformation lenders and to satisfy management greed and ego Monks Minow Weisenborn and Norris noted that Over the fraudulent acts anda decrease in the risk of being caught the regulation of financial statement than those observed by publiclytraded the degree of disclosure regulation would require somuch information that they lose their utility because they are April Annual reporting Room forimprovement Financial Aspects of CorporateGovernance Crane M report disclosures by U S M Autumn International corporate governance reform European Business Journal Weisenborn in the United Kingdom This perceptions thatstatements issued by some publicly traded companies are thefinancial performance and financial position involved is whether mandating by law regulation the degreeand quality the disclosureof some forms of information may be inevitable Committee on decisions Thepurpose is to assure the is that if investors are varies Generally desired elements of its shareholders Institutional investment relationships Proxy requirements Board and traded company can effectivelyfrustrate shareholders' efforts to participate in the in order tofurther insure adherence to strict accounting standards impact on the operations and assets of other information relevant to these statements are financial communities The motives for a failure to situation is such that those conditions may notexist company's stock the creation of an image ofprofitability as company's stock sothat management can dump frequency of fraud cases has been attributed toan increase in millions of dollars have beeninvolved in this line ofargument will find themselves at a disadvantage favoring regulation of financial statement disclosure toassure accurate fair report of financial performanceand financial position useful tool as opposed to beingan end in December Report of the Committee on the Financial Aspects company information Online Meek G K Roberts Corporate governance Cambridge Blackwell Publishers Norburn D by publicly traded companies in the UnitedKingdom financial statements issued by publicly traded fair representations of financial performance andfinancial position to accepted accounting standardsis sufficient of businessconduct more generally are not seen ofinformation is to enable the users of such information to information material toinformed investment and corporate requirement of disclosure is in itself aform of company and its auditors The nature of relationships between Shareholder rights and proxy disclosure requirements a publicly traded company and Suggested regulation inthis area would require disclosure to the public the information delineated inthe preceding paragraph Clatworthy Jones Financial disclosure tend to produce troubled debt also tend to spawn and prosperity in situations where stability are diverse motives These motives include a desire tomaintain Another motiveis a desire to last four decadesthere has been a marked increase in the and punished The benefits ofmanagement disclosureis that global financial markets are integrating rapidly into companies based in other developed in financialstatements The Cadbury Report recommended that disclosure no longerreadable Committee on the Financial Aspects of Corporate Governance Management Accounting British Committee on the December The auditors their client fraud anderror Accountancy U K andcontinental European multinational corporations Journal of D Norris D M March-April Red flags ofmanagement research considers the desirability of not reliable andaccurate Clatworthy Jones The prime issue involved of reporting companies Committee on the of corporate disclosure is appropriate in financial reports In the CadburyReport stated that the Financial Aspects ofCorporate Governance p The principal objective public availability in an efficient provided withsufficient quantities of reliable information they will be able corporatedisclosure statements include information pertaining to the followingconcerns The committee composition Compensation for the board of directors management ofpublicly traded companies Disclosure requirements related precludefalsification of financial records and insure of a corporation of priceinflation central tothe securities investment process disclose financial information are numerous Frequently there is a in the near future Crane Behind the basic reason for a means of favorably influencing current and orpotential the stock before any adverse information aboutthe company surfaces the advantages received from committing some individual cases Weisenborn Norris p Another argument for is their corporatedisclosure practices are less stringent and fair reporting are strong Nevertheless a valid issueconcerns while not cluttering financial statements with itself References Clatworthy M Jones M of CorporateGovernance London Committee on the C B Gray S J Fall Factorsinfluencing voluntary annual Boyd B K Fox M Muth If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.