Calling all parties: Now is the time to come to the aid of the balance sheet
Recently, accountants were instructed by President Bush to get their acts together. Indeed, the Enron, WorldCom, Tyco, and other recent corporate financial reporting failures have prompted a loss of faith in accountants and accounting. To a large extent, this loss of faith involves corporate balance...
Saved in:
Published in | Business horizons Vol. 48; no. 4; pp. 325 - 335 |
---|---|
Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Greenwich
Elsevier Inc
01.07.2005
Elsevier Science Ltd |
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | Recently, accountants were instructed by President Bush to get their acts together. Indeed, the Enron, WorldCom, Tyco, and other recent corporate financial reporting failures have prompted a loss of faith in accountants and accounting. To a large extent, this loss of faith involves corporate balance sheets and it is warranted. Corporate managers and shareholders have a vested interest in addressing balance sheet shortcomings. This article highlights the pervasive shortcomings of contemporary corporate balance sheets, identifies the underlying foundational tensions creating those shortcomings, offers proposals to address those tensions, and discusses the potential implications of our proposals. |
---|---|
ISSN: | 0007-6813 1873-6068 |
DOI: | 10.1016/j.bushor.2004.12.001 |