Michael Piwowar made a funny:
Imagine a world where GAAP or other reporting standards did not exist – where management could develop its own numbers based on its own poorly-defined criteria. Management might be tempted to create numbers that provide the illusion of performance but in reality are largely irrelevant to measuring the actual performance of that organization. Reported numbers might be distributed for public consumption without clear disclosure as to how they were derived. These numbers could also be touted in press releases and other public statements by management in order to paint a flawed view of the organization’s productivity and effectiveness. But enough about the SEC’s enforcement statistics.
Here's a joke briefer for those feeling a little lost.
Global Reporting Standards are gaining popularity among investors and finance executives, according to a new report by ACCA. Around 170 senior executives and investors were questioned. More than 40% said international financial reporting standards improve access to capital, while around 25% believe the global standards have lowered capital costs. ACCA chief executive Helen Brand said: “Growing support amongst CFOs and investors for [IFRS] must be considered carefully” by US regulator the SEC as it debates converging US GAAP with international standards. “We believe a positive answer from the SEC would give a tremendous boost to the cause of financial reporting and more importantly the world economy.” [