fred/wallet
1
0
Fork 0
forked from cheng/wallet
Code Pull Requests Activity

Minor correction

Browse Source 
manifesto/sox_accounting.md
This commit is contained in:
reaction.la 2023-11-03 23:58:42 +00:00
parent 0e195d8e68
commit f683a3ab0e
No known key found for this signature in database
GPG Key ID: 99914792148C8388
1 changed files with 8 additions and 5 deletions
Show Stats Download Patch File Download Diff File Expand all files Collapse all files

13
docs/manifesto/sox_accounting.md
View File

@ -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, And, as ponzi scams tend to do, need to do, they grew and grew and grew,
resulting many excited investors buying Enron shares. 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 can you create value without ever getting anywhere near anything that actually
has value?”. To which Enron replied “financial wizardry”, which was, in a has value?”. To which Enron replied “financial wizardry”, which was, in a
sense, true. 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 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 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 creditors went through the books, they found all the mortgages the entities
supposedly owned, but were frequently unable to find the people supposedly owned, but were frequently unable to find the physical people
supposedly responsible for paying these mortgages, or the properties that supposedly responsible for paying these mortgages,
and were sometimes unable to find the physical properties that
were supposedly security for these mortgages. 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 different, more complex, and difficult to define, task. Sox books tend to
track official reality and disregard the reality of the ground beneath your 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 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. books do not accurately tell the investors how the business is doing.
What established businesses do instead is prepare one set of books for 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 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 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 real books that actually reflect the movement and creation of value for the