Someone Hasn’t Been Doing Their Homework – NEC Voted Off the Island

Author:
Publish date:

Filing annual reports and auditing financial statements according to US GAAP standards is excruciating for all public companies but for NEC electronics, it’s become a debilitating factor in their American depository receipts trading on our exchange.
The company formerly known as Nippon Electronic Company’s ADRs will no longer be traded on the Nasdaq as of today. Not only are they unable to file their Form 20-F for the fiscal year rounding up in March ’06, they announced their US filings dating back to 1999 are unreliable.
According to a report by CNN Money, the NEC said a restatement (of their annual report) "is not practicable" because of the complexities involved in determining the necessary adjustments. We previously reported that the Europeans are also taking issue with our accounting principles and filing standards and realize we’re seeing a trend here.
Are our accounting standards REALLY that difficult? Is this our problem or theirs? Have our accounting rules become so arcane they're driving companies away from us? A bunch of you have your CFA designation – tell us what’s going on here.
Nasdaq Takes Step to Delist NEC Corp. [Wall Street Journal]

NEC Will Not File Fiscal 2006 Report
[CNNMoney.com]

Related