The securities and exchange commision staff has ordered

Reference no: EM13613961

The Securities and Exchange Commision staff has ordered FannieMae, the nations's largest mortgage company, to restate its lastfour annual reports. The SEC chief accountant announced that thecompany's accounting practices for 2001 through mid-2004 "did notcomply in mateial respects" with accounting rules related to loans.The company has been accused of deliberately violatng accountingrules to smooth earnings, meet financial projections,and increasebonuses for senior executives. News reports indicate the companyintends to comply with the SEC ruling.
Source: TheStreet.com (15 December 2004).

A. What is the SEC? What is its mission?
B. If a company's management believes they have reportedearnings in a meaningful way, why can the SEC force them to restateearnings?
C. If management issued misleading financial informationm, dothe shareholders have a reason to be upset with the company?Explain.

Reference no: EM13613961

Questions Cloud

Construct a 99 confidence interval estimate of the : in a timecnn survey 24 of 505 single women said that they definitely want to get married. in the same survey 27 of 260

Prepare an income statement and a retained : in each situation state whether the decision maker would bemost likely to place primary emphasis on information

As the load on the motor is increased the developed torque : a 115-v shunt motor develops 21 ib-ft when the armature current is 12 a. as the load on the motor is increased the

Find the probability that not enough seats will be : a boeing 767-300 has 213 seats. when someone buys a ticket for a flight there is a 0.0995 chance that the person will

The securities and exchange commision staff has ordered : the securities and exchange commision staff has ordered fanniemae the nationss largest mortgage company to restate its

A youngs interference experiment is performed with : a youngs interference experiment is performed with monochromatic light. the separation between the slits is 0.500 mm

Find the net electric field magnitude and direction at x 0 : two charges are placed on the x axis. one of the charges q1 9.3 microc is at x1 3.1 cm and the other q2 -18 microc

A standard slot machine has three reels the first reel has : a standard slot machine has three reels. the first reel has 3 walnuts 7 cherries 3 oranges 5 lemons 1 bell and 1

You are considering opening a shop in a nearby mall that : you are considering opening a shop in a nearby mall that willsell specilaty t-shirts. t-shirts containing designs and

User Account

All Pages