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Uncooking the books: restoring accounting. (Enron Capitalism And How To Fix It).(Brief Article)

American Prospect, The,  March, 2002  by Lowenstein, Louis

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FINANCIAL ACCOUNTING HAS ONE quite simple goal: to give investors and other outsiders an honest report on a company's performance and management's stewardship. Accurate accounting ("transparency") is something that we Americans preach to other nations as an essential precondition for successful capitalism.

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In practice, of course, it's enormously difficult to reduce to a handful of useful numbers the complex operations, spread over many countries, of a modern industrial enterprise. But in recent years, that task has been badly skewed by Wall Street's obsessive focus on ...

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