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Gap in the GAAP

No this is not about the clothing retailer or hoodies.  Rather it is about the CEO types 'stepping down'.  There has been a lot of that lately.  Have you noticed?  Presidents and CEOs of corporations large and small, University Provosts and Deans, of course a number of 'fatherly' figures, comedians,  eminent scientists and the like, the list goes on.

And this is not some some stool or ladder they got tired of standing on.  Oh no.  This is a reaction to an allegation or evidence of impropriety they exhibited while holding that eminent position or office.

So let me explain what sexual mischief or adultery while in office (or out) has to do with GAAP.  For the uninitiated the GAAP stands for 'Generally Accepted Accounting Principles' and refers to a body of work that a bunch of CPA types put together as a guide for how a business should compile its financial statements.

This information is made public to the shareholders of a going concern to allay any ongoing concerns about its well being and provide insight into the assets and liabilities on hand.  So now that the boring stuff is out of the way I shall proceed to tie the two hitherto obscure references together.

See, the hypocrisy of putting leaders who veer of the moral path to shame needs to stop.  The noodle has historically got in the way of a good recipe (you know in a manner of speaking) and it will continue to do so.  Now whether that affects the financial outcome of a business or not may be a matter for the CPA types to decide.  In doing so they can now make additional provisions on the liabilities or Disclosure Section where the company simply has to say -

Short Term Liabilities -
Accounts Payable, Aging Debts and 'All the known or unknown sexual encounters of its officers in gory detail'.  This will be a first where 'balance sheets' and bed sheets are discussed on the same page (irrespective of whether the business happens to be in the bedding category or not).

Disclosure can go on to read - 
The business hereby discloses its management's material interest in Ms. Goabout who happens to have been hired for the exclusive physical characteristics she brings to the bed, or if its a woman leader with extra curricular interests we disclose that she will be unable to attend the shareholder meeting due to prior commitments with the guy in Corp Comm, in the Westin on Market Street.

With the aforementioned, the stock holders can proceed to dump the stock or hold.  Especially if it provides juicy returns regardless of the sexual shenanigans (I mean of the dividend kind).  No need for anyone to step down.

Comments

  1. What about politicos? Die-hard Gary Hart's campaign died a sudden death due to one of those..

    ReplyDelete
  2. Depends on what 'about' means..reference to master of vocabulary Bill

    ReplyDelete

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