Are companies in the emerging markets conforming to Western-style accounting standards?
We don’t see the types of accounting abuse in the emerging world that we have been seeing lately in the U.S. The penalties for such acts are quite high. We believe accounting standards have greatly improved in the emerging markets. For one thing, many of these countries are reliant on foreign sources of funding, either loan funding or shared capital funding. The emergence of the Internet has also made it enormously easier to examine a company’s financial statements. Any advice, analysis, or recommendations contained in articles labeled “Insight from Standard & Poor’s” reflect the views of Standard & Poor’s, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor’s. Standard & Poor’s and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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