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DEATH TO QUARTERLY REPORTS? Are quarterly financial reports 'the enemy of American business'? Rep. Don Ritter (R-Pa.) thinks so, and he's offering new life by introducing legislation in Congress that [...]

The Accounting Standards Board should espouse good stewardship as the objective of financial statements. The concept that financial reporting functions to furnish information vital to economic decision-making is insufficient because it does not provide a basis for setting standards, it does not explain present accounting practices, and it does not allow financial statements to be used in the assumed manner. Focus should be placed on accounting's control function to facilitate highly effective standards of accounting, and more resilient and efficient financial systems.

Tightened reporting rules for Mission Viejo bank Regulators concerned by rapid asset growth Mission Viejo National Bank, appeasing federal banking regulators concerned by the institution's rapid asset growth, has agreed [...]

L.A. Gear sued by Nike LOS ANGELES - Nike Inc., Beaverton, Ore., has filed a two-count lawsuit against L.A. Gear Inc. in the Federal District Court. According to the court [...]

The Knesset will soon approve a special law which is causing a commotion among the management cadres in Israel. The law places criminal liability on managers who mislead the public [...]

The corporation report is increasingly viewed as a medium to communicate condensed financial information to shareholders, as well as to provide information about company products and facilities. Financial information required by the SEC is or will be provided through other forms of communications such as proxy statements and press releases.

The National Commission on Fraudulent Financial Reporting, also known as the Treadway Commission (since it is led by Representative James C. Treadway, Jr.), is a joint investigative committee sponsored by several professional accounting associations, including the National Association of Accountants. The commission was formed in response to increased public scrutiny of the accounting profession and the growing need for prevention of fraudulent financial statements issued by corporate bodies. The preliminary findings of the commission were discussed by chairman Treadway at the recent convention of the American Institute of Certified Public Accountants. The topics discussed include the causes, prevention, and detection of fraud in audits and other financial reports. Eleven conclusions arrived at by the commission are also identified; these include: (1) all publicly traded corporations should be required to form audit committees, risk assessment programs, risk management programs, and internal auditing departments, (2) audit committees should be responsible for the accuracy of corporate financial reports, (3) corporate executives (as well as outside accountants) should issue opinions on financial reports, (4) corporate executives should be responsible for the accuracy of reports to shareholders, and (5) internal auditing departments should participate more in the reporting of financial results of operations.

An examination is made on how management responds to the new rules on how to produce a statement included in the directors' report covering the range of employee involvement in their respective firms. The Employment Protection Act of 1982 stipulates that firms with over 250 workers must include with the directors' report a statement covering worker participation in the decision-making processes. Report preparation is examined.

Do British companies report to shareholders in a timely enough manner? Such reporting should be in time for the stockholder to make decisions based on the information. In research done by MHC Lunt for the ICAEW, timeliness was studied in 50 large and 50 small companies, together with 17 non-industrial companies. Industrial companies tended to take an average of 75 days between the end of a fiscal period and the reporting of information. Non-industrial companies were quicker - 31 to 60 days. Most companies (over 90%) sent reports directly to the shareholder rather than advertising only. Other conclusions were that if the news was bad, the report would probably be sent later, the patterns of reporting follow industry traditions rather than the individual company's attitudes, late reports give less information, are less communicative, nationalized companies report later than private, U.S. es and Exchange Commission requires annual reports to be filed within 90 days and this is met by all New York Stock Exchange companies. British companies are required to make financial reports by the Companies Act. In order to be fully accountable to shareholders, companies should make complete and timely reports, and criteria should be established for different types of companies.