This PPP #2 based on chapter 8 of the textbook ( pp.173-190) will be reviewed again in PPP #3 in “Review of Chapters 2 and 8, and Advanced Discussion”.
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• This PPP #2 based on chapter 8 of the textbook ( pp.173-190) will be reviewed again in PPP #3 in “Review of Chapters 2 and 8, and Advanced Discussion”.
• However, at the end of this Chapter 8, pp.191-200 of the textbook, there is a description of new development of Government Regulations in the U.S. (Sarbanes-Oxley Act) and Canada (Bill 198).
• Monitoring and Enforcement of Restrictive Covenants– Discourage undesirable behavior– Encourage desirable behavior– Keep collateral valuable– Provide information
• In October 2002, the Ontario government introduced Bill 198 in response to reforms in the United States.
• Similar to Sarbanes-Oxley Act, this bill made several reforms to security laws including auditor independence, CEO and CFO accountability for financial reporting, enhanced penalties for illegal activities and faster public disclosure.
We are skipping this part for now (from pp. 201-207). Why? We do not bite too big a topic for now in this course; We will do so later as we have got enough knowledge.