By: Cydney Posner

While calling for simplicity on the one hand, SEC Chair Christopher Cox appears, on the other hand, to be looking at piling on some additional layers of complexity, as discussed in the Washington Post. Apparently, the SEC is considering the possibility of requiring disclosure of corporate tax information, perhaps in a side-by-side presentation of tax reporting and financial reporting. While there are a number of reasons for the differences between the financial information presented for tax and accounting purposes, the article suggests that some have regarded the differences "with suspicion," because companies "are under pressure to maximize earnings they report to shareholders while minimizing earnings they report to the revenue service." The goal of the additional disclosure would be to add clarity by allowing investors to view a company's finances from both perspectives.

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