Time to Change the Companies Act?

Abstract

Innovative methods for structuring financial deals are raising questions about the effectiveness of traditional and generally accepted accounting practices for meeting the fundamental reporting criterion of fair presentation. Off-balance sheet financing is emerging as a result of information reported according to the letter of the law rather than the spirit of the law. This paper examines the undesirable consequences of the above and suggests solutions that wouid avoid entrenching such practices as generaly accepted.

Additional information

Notes on contributors

M.D.F. Steele

Margo Steele is a Professor and head of the department of Accounting at the University of the Witwatersrand