Investors: What's being done about misleading financial reports?

✍ Scribed by Mohamed E. Hussein; Gim S. Seow

• Publisher: John Wiley and Sons
• Year: 2002
• Tongue: English
• Weight: 100 KB
• Volume: 13
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.10102

✦ Synopsis

Abstract

Do financial reports really tell investors the whole truth? Companies like Amazon.com and Microsoft
derive most of their value from new types of intangible assets—such as technology, processes, and customer
loyalties. But the current model of financial reporting doesn't recognize many of these new intangible
assets. This has created a widening gap between book values and market valuations for many emerging companies.
The authors explore what's being done about this thorny problem, here and abroad. They also include some
useful charts comparing U.S. and international accounting for intangible assets. © 2002 Wiley
Periodicals, Inc.