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SEC urges big changes in accounting and reporting
Author(s) -
Kimmel Paul,
Warfield Terry
Publication year - 2004
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20055
Subject(s) - accounting , audit , business , management accounting , political science
The Sarbanes‐Oxley Act (SOX) will probably make the discourse between top management, audit committees, and auditors more contentious in the coming years. But the very nature of that discourse may change—if regulators adopt a new approach called “principles‐based accounting.” SOX mandated that the SEC study the usefulness of this approach. And the SEC's report, issued late last year, recommended a move to principles‐based accounting. So what are the implications of this change for top management? © 2004 Wiley Periodicals, Inc.