Cooks The Books The Sarbanes-Oxley act principally governs the activity of publicly traded companies in order to protect anyone with an interest in the financial activities of those companies. Off-balance Sheet ItemsOff-balance sheet items are those assets that are not directly owned by the business and therefore do not appear in the basic format of Read more

Cook The Books Definition Financial StatementsFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs over a given period . These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity Read more

Creative Accounting In this article we deal with issues of accounting and financial statement fraud, the recent background of systemic fraud, and some of the methods used to commit fraud. In this article we will also discuss the Sarbanes-Oxley Act of 2002 in greater detail. In accounting the term cooking the books is generally meant Read more

The Cost To Firms Of Cooking The Books On Jstor Additionally this section bans publicly traded companies from making financial loans to any of the company’s executives. This type of situation is similar to what was discovered as one of the problems during the WorldCom scandal in 2002. This section is more commonly known as Read more

Urban Dictionary This section requires that publicly traded companies specifically discuss transactions that were previously not addressed. What this means is that companies are now required to discuss things such as off-balance-sheet financing and any other relationships or transactions that could have a material influence in the financial position of the company. Also in order Read more