Obama: asset or liability?
30 Oct 2008, Accountancy Age, AccountancyAge
http://www.accountancyage.com/aa/feature/1753824/obama-asset-liability
Barack Obama, charismatic, persuasive, astute and promising the kind of radical change to US politics that many around the world could not imagine. This is the most gripping US election in decades and yet would either candidate be good for accountants?
The answer is that Obama, if he wins, has the potential to send the development of core issues international standards, audit liability caps and fair value in a direction that could not have been imagined just a few months ago.
Probing the prospects for accountants under a new presidential regime is not an empty task. The interconnected nature of the global economy means developments in the US, as we have seen with the credit crisis, can have far reaching ramifications for other nations. The Sarbanes Oxley Act to clean up internal controls, after the Enron and WorldCom collapses, demonstrates emphatically just how change in US financial regulation can quickly transform the landscape for accountants in Britain, Europe and far beyond.
So, as we wait for the outcome of this historic presidential election, there are questions accountants need to consider.
There are four key areas. Will the new president permanently disable fair value? Will he accept the argument for an audit liability cap? Will a shift to international accounting standards be embraced? How good will a new president be to companies through corporate taxation?
Few direct statements have been made on any of these issues by the candidates, but our writers have spoken to observers and advisers to give Accountancy Age readers some idea of what might be on the horizon. It cannot be forgotten that the financial crisis may have changed everything. A more inward looking president may not think highly of auditors or convergence to global accounting standards. It’s possible a new president may be more protectionist, much less of an internationalist.
As we near the conclusion of this campaign, there is everything to play for in the big issues affecting accountants. In the following pages our writers will hopefully throw some light on the direction a new president will take.
To read all the general news, features and comment on the topic, click on the stories below...
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Duo tipped to battle it out for SEC chairman role
Fair value's future remains uncertain
'When looking for scapegoats anybody could be found'
© Incisive Media Investments Limited 2012, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
Visitor comments
Paying the price
I am surprised that so many accountants appea
to support Obama. I am more surprised that we
as a group are not leading the charge for more
transparancy and accountability from Congress and our
federal agency. The cause of this "disturbance" is
the lack of courage to demand accountablity
and correction. How can we as CPA support a
person who can not meet our standards.
My example is our standard of independance and
how congress and our canidate accepted money
from the agencies they were overseeing. If we do not demand the price for this mockery of regulation we are going to pay more than the X-Trillion being blown.
Posted by: Milton Bulloch , 01 Nov 2008 | 00:00
Obama's Presidency
Few points to take into consideration. I hope i'm wrong when I say this but I do expect Obama's party to concentrate more on the taxes within the US. In fairness to the US this will mean bad business for any country which has dealings with the US, and from the way the Stock Markets fell in Europe upon his winning the Presidency we are already wary about how he can benefit European Markets. The idea that the Corporation Tax incentives that US firms are getting for instance by having their business within Ireland (Low Corporation Tax Rates). This will be the first thing Obama will change in order to sustain the US economy. The Corporation Tax Rates that companies would ultimately been charged in the US will be passed on exactly to country' that do part or all of their business in Ireland for instance. This will take away the incentive of the low corporation tax incentive. During his campaign he did mention that taxes would be something that would be taken in to careful consideration. After all Obama has a background in Economics. He's got a fair idea how the market both within and outside of the US operate.
Posted by: Tony Bellew , 05 Nov 2008 | 00:00