Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (2441)	7/17/2002 3:27:02 PM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

How will this impact the market next month...?? _______________________________________ SEC: Cos. Want to Modify Results By KAREN TALLEY 07/17/2002 02:18:11 EST NEW YORK (AP) - The Securities and Exchange Commission is hitting a nerve with its new requirement that corporate executives swear to the accuracy of their financial statements. A number of companies are asking if they can modify the information in their recent financial results before signing on the dotted line, according to a staffer at the SEC. Under an order by the SEC, chief executives and financial chiefs at companies with more than $1.2 billion in revenue have to swear under oath in writing that their financial results are complete and accurate. The deadline for most companies is Aug. 14. The SEC's response to the requested "modifications," which have mostly been coming from corporate counsels, is an unequivocal no. "This is black or white, there is no gray," said SEC spokesman John Nester. "Either you attest to the accuracy of the figures" in financial results "or you go into the pile that doesn't comply." Companies in the noncompliance pile will have the opportunity to explain why they aren't comfortable endorsing their report, and even if the reasons are valid, the hesitation could create some discomfort or even backlash as word gets out. "No one wants to be in the explanation pile," Nester said. "But that's how it's going to be. Our goal is to supply a very clear picture of who's been in compliance and who has not." The fact that some companies are asking for permission to do a bit of extra work on their already-filed reports did not surprise many market watchers. "I kind of expected it," said Howard Barlow, managing director at Cypress Strategies. "It's well known that many companies make a practice of massaging their numbers." The SEC's order is expected to be broadened in the months ahead to include many more companies, but already some of these smaller firms are approaching the SEC about certifying their reports. The companies see such a move as providing a seal of approval that could serve as an inducement to investors looking for honest businesses, analysts said.