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COVER
STORY
Corporate
Governance in Asia: The Challenge of Improving Transparency - - Madan Lal Bhasin
Corporate
Governance (CG) has been getting greater attention with the
series of corporate failings, after which the markets, investors
and the society have begun to lose faith in the infallibility
of these systems. Realistically speaking, CG is concerned
with wider accountability and the responsibility of the Directors
towards every stakeholder of the corporation. Nowadays, the
conduct of those who take care of public money is being questioned,
since they are being tested on ethical standards. We have
advocated the application of Dharma, as stipulated in ancient
Indian Shastras. CG can be ethical when it rests on the tenets
of Dharma, i.e., Loka Sangraha, Kausalam, Vividhta, Jigyasa,
etc. Thus, CG and ethical conduct in business stems from the
culture and mindset of the management, and is beyond the realm
of law.
© 2005 Madan Lal Bhasin. All Rights Reserved.
REPORTING
Will
IFRS 6 Strike Gold? - - Riaan Davel
The
article is all about the accounting developments for extractive
activities in South Africa over the last decade. It also presents
the latest addition to accounting standards, namely IFRS 6
(AC 143) Exploration for and Evaluation of Mineral Resources,
and to explore the way forward on accounting for entities
involved in extractive activities.
© 2005 Accountancy SA (www.accountancy.org.za). Reprinted
with permission.
BUSINESS
ENVIRONMENT
Economic
Value Added: A New Tool for Corporate Performance Appraisal - - Siddhartha Sankar Saha
Unlike
earlier performance measures, the adoption of Economic Value
Added (EVA) is a relatively new measurement technique to assess
shareholder wealth. EVA is a measurement tool that determines
value addition if a business is earning more than its true
cost of capital. Proponents of EVA believe that it provides
corporate managers a clearer idea of whether they are creating
or destroying shareholder wealth. The concept of EVA is gaining
popularity in India as a superior performance measure both
for corporate reporting and for internal governance. In this
perspective, this paper traces the background of EVA and tries
to assess the need for it in its first section. The second
part of the article deals with general ideas on EVA. The third
part makes an effort to forge a relationship between EVA and
MVA and also between EVA and NPV. In the fourth section, benefits
and limitations of EVA have been discussed. The fifth part
criticizes conventional measures and EVA. An attempt has been
made to explain the method of implementation of EVA and other
value-based measures in the next part of this paper.
© 2005 IUP. All Rights Reserved
SOA
Section
404 Implementation: Is the Gain Worth the Pain? - - William M Sinnett and Ellen M Heffes
Following
a Financial Executives International (FEI)-led meeting on
Sarbanes-Oxley Section 404 implementation, Financial Executives
Research Foundation (FERF) spoke with several participants
about their year one experiences and their recommendations
for year two.
© 2005 Financial Executive Magazine (www.financialexecutivemag.com).
Reprinted with permission.
SOA
Sarbanes-Oxley
Section 404: 2005 and Beyond - - Ankur Bhandari
As
companies enter their second year of Sarbanes-Oxley 404 compliance,
they need to focus on the key insights and lessons from 2004
and, more importantly, define their thinking for the way forward
in 2005 and beyond.
© 2005 Ankur Bhandari. Originally published in www.gtnews.com
on May 16, 2005. Reprinted with permission.
TAX
VAT
Implementation and its Consequences - - Sumit Bansal
This
article seeks to provide an insight into the transition into
the VAT regime from the sales tax regime. The basic purpose
is to examine how the implementation of VAT changes the rules
of the game for businesses in India. It also attempts to bring
forth the key strengths and fallacies of the new system.
© 2005 IUP. All Rights Reserved
TECHNOLOGY
Database
Auditing: Essential Business Practice for Today's Risk Management - - Murray Mazer
Automated
database auditing provides organizations the necessary tools
to examine suspicious behavior and test an organization's
control environment.
© 2005 The Institute of Internal Auditors, Inc. Originally
published in ITAudit, Vol. 8, May 15, 2005, published by The
Institute of Internal Auditors Inc. (www.theiia.org/itaudit).
Reprinted with permission.
SPEECH
Speech
by SEC Staff: Governance, the Board and Compensation - - Chester S Spatt
This
was prepared for the Keynote Address on June 9, 2005 at the
Carnegie Mellon University-Jones Day Conference in Pittsburgh,
PA on "Getting Back to Business: Beyond Sarbanes-Oxley." The
Securities and Exchange Commission (SEC) disclaims responsibility
for any private publication or statement of any SEC employee
or Commissioner. This presentation expresses the author's
views and does not necessarily reflect those of the Commission,
the Commissioners, or other members of the staff.
© 2005 US Securities and Exchange Commission (www.sec.gov).
Speech by Chester S Spatt, Chief Economist and Director of
the Office of Economic Analysis, US Securities and Exchange
Commission, delivered on June 9, 2005 in Pittsburgh, PA. Reprinted
with permission.
RESEARCH
SUMMARY
Social
Norms versus Standards of Accounting
This
research paper defines the role of social norms and standards
of accounting in the practice of corporate financial reporting.
It also highlights the comparison between successful implementation
of the manual and internal sanction of norms and the formal
enforcement mechanism of standards with the government's implicit
or explicit support to impose punishment.
© 2005 Shyam Sunder. All Rights Reserved. The IUP holds the copyright for the summary.
BOOK
REVIEW
Corporate
Social Responsibility: Doing the Most Good for Your Company
and Your Cause - - Philip Kotler, Nancy Lee
Corporate
social responsibility is a concern not only for the managers
of a company, but also for its investors, employees and stakeholders.
This book explores the best and the most innovative practices
needed to be a good corporate citizen and to maximize the
returns on investments for social causes.
© 2005 Philip Kotler and Nancy Lee. All Rights Reserved. The
IUP holds the copyright for the review. |
