This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Fix 'damaged' financial reporting system: Financial Analysts

  • News default Image

22 Feb 2002

The Association for Investment Management and Research has taken full-page ads in the Wall Street Journal and Washington Post with its views on How to Fix a Damaged Financial Reporting System (PDF 259k): For the past 20 years, AIMR has advocated that issuers should not be allowed to tailor transactions to get an accounting treatment that suits them.

We have repeatedly asked for accounting rules that would require issuers to:
  • Report on the balance sheet all assets under their control and all liabilities for which they have responsibility.
  • Explain how and why they use derivatives.
  • Measure and record compensation expense for employee stock options.
  • Recognize all financial assets, liabilities, and derivatives at fair value with changes reported in earnings.
  • Conduct and disclose meaningful market-sensitivity analyses or 'stress tests' so users can forecast potential risks under changing market conditions.
Despite their best efforts to enact such rules, the FASB and SEC succumbed to political pressure and issuers' objections.

Click for AIMR Press Release.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.