complexityofP&G’sbusinesses,alargeportionofitreflects
the effects of new accounting edicts and rules.
FIGURE16.1NumberofPagesin10-K:Procter&Gamble
and Kimberly-Clark
Source:Securities and Exchange Commission.
The process continues unabated. Each accounting scandal
adds to the pressure on both legislators and accounting
standardsboardstoaddnewrequirementsonwhatneedsto
be disclosed to investors. Thus, the passage of
Sarbanes-Oxleywillundoubtedlygenerateanincreaseinthe
volume,ifnotquality,offinancialstatementsinthenextfew
years.InbothEuropeandtheUnitedStates,thepushtoward
fair-valueaccounting, whilewell-intentioned, has addedto
theheftoffinancialstatementsandmadethemmoredifficult
to work with, rather than more informative.