diff --git a/docs/manifesto/sox_accounting.md b/docs/manifesto/sox_accounting.md index 20acd6b..df8b451 100644 --- a/docs/manifesto/sox_accounting.md +++ b/docs/manifesto/sox_accounting.md @@ -14,7 +14,7 @@ themselves ever going near the stuff, or knowing anything about the stuff. And, as ponzi scams tend to do, need to do, they grew and grew and grew, resulting many excited investors buying Enron shares. -And some people wondered, “where are these mighty profits coming from. How +And some people wondered, “where are these mighty profits coming from? How can you create value without ever getting anywhere near anything that actually has value?”. To which Enron replied “financial wizardry”, which was, in a sense, true. @@ -99,11 +99,13 @@ Accounting is the art and science of making sense out of the books, and making sure the books make sense. In the aftermath of the Great Minority Mortgage Meltdown, a whole lot of entities went belly up, and when the creditors went through the books, they found all the mortgages the entities -supposedly owned, but were frequently unable to find the people -supposedly responsible for paying these mortgages, or the properties that +supposedly owned, but were frequently unable to find the physical people +supposedly responsible for paying these mortgages, +and were sometimes unable to find the physical properties that were supposedly security for these mortgages. -Sox books just tend to not track value very well, being designed for a +Sox books just tend to not track value very well, because they +just don't track physical reality, being designed for a different, more complex, and difficult to define, task. Sox books tend to track official reality and disregard the reality of the ground beneath your feet, the things in your hands, and what is before your eyes, with the result @@ -128,7 +130,8 @@ startups trying to go public, since the potential investors know that the books do not accurately tell the investors how the business is doing. What established businesses do instead is prepare one set of books for -Sox compliance, and another set of books for management that do not comply +Sox compliance, and another illegal and forbidden +set of books for management that do not comply with Sox but which actually do reflect the movement and creation of value, but a startup is not allowed to tell potential investors about the real books that actually reflect the movement and creation of value for the