January 21, 2005
Silver Lining to Sarbanes-Oxley?
It seems that since the requirements of Sarbanes-Oxley were enacted, there has been an improvement in earnings projections. Maybe, there is more attention being paid to accuracy inside corporations. Public companies are now forced to review their processes and procedures with a fine tooth comb.
An excerpt on this topic is here:
Study: Sarbanes-Oxley May Be Improving Earnings Projections
Chicago (Jan. 21, 2005) - The Sarbanes-Oxley Act, along with the Securities and Exchange Commission's accelerated reporting guidelines, appear to be improving the accuracy of companies' earnings forecasts, according to a report by management consultancy firm Parson Consulting.
The percentage of companies among the Standard & Poors 500 stock index that missed analysts' earnings-per-share projections by at least 10 percent fell to 29.7 percent in the 2004 third quarter -- the lowest level since Parson began the quarterly study in the first quarter of 2003.
According to Parsons, the SEC accelerated reporting deadlines and federal Sarbanes-Oxley Act -- which shortened the timeframe in which companies must report their quarterly and annual earnings to the SEC, while demanding transparency and accuracy of financial information -- are having a beneficial effect. This need to report more quickly to the SEC is leading companies to streamline their processes and employ more sophisticated financial systems that improve the accuracy of forecasts, Parson experts say." Click here for the whole article.
To learn more about how your company can rapidly and cost effectively comply with Sarbanes-Oxley, see www.issuescentral.com and view the Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this topic is here:
Study: Sarbanes-Oxley May Be Improving Earnings Projections
Chicago (Jan. 21, 2005) - The Sarbanes-Oxley Act, along with the Securities and Exchange Commission's accelerated reporting guidelines, appear to be improving the accuracy of companies' earnings forecasts, according to a report by management consultancy firm Parson Consulting.
The percentage of companies among the Standard & Poors 500 stock index that missed analysts' earnings-per-share projections by at least 10 percent fell to 29.7 percent in the 2004 third quarter -- the lowest level since Parson began the quarterly study in the first quarter of 2003.
According to Parsons, the SEC accelerated reporting deadlines and federal Sarbanes-Oxley Act -- which shortened the timeframe in which companies must report their quarterly and annual earnings to the SEC, while demanding transparency and accuracy of financial information -- are having a beneficial effect. This need to report more quickly to the SEC is leading companies to streamline their processes and employ more sophisticated financial systems that improve the accuracy of forecasts, Parson experts say." Click here for the whole article.
To learn more about how your company can rapidly and cost effectively comply with Sarbanes-Oxley, see www.issuescentral.com and view the Sarbanes-Oxley Compliance Playbook(tm).
