PALM DESERT, Calif. - Outdated and risky in this age of accounting scandals plaguing Wall Street. That is how a fund consultant and author described the fund industry's model for reviewing corporate reporting. To stave off future legislation, a new model is needed, the speaker told the 700 fund accountants gathered here last week at the Investment Company Institute's Tax & Accounting Conference.
Robert Eccles outlined an aggressive plan for reviewing corporate reports, which, he said, will help ensure that earnings statements reflect the true value of a company. In addition, Eccles, president of Advisory Capital Partners, and co-author of Building Public Trust: The Future of Corporate Reporting (John Wiley & Sons) called on the mutual fund industry to pressure companies to adopt the new reporting model.