Think diffident

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I have a new article up at American.com on Apple’s controversial $1.99 charge to upgrade consumer’s Wi-Fi cards. Snippet: “The rule that made Apple’s mess predates Sarbanes-Oxley—but Sarbox’s stiffened penalties may well have changed Apple’s calculus. What was previously an accounting principle that could have, in a special circumstance like this one, been benignly neglected with the use of an explanatory footnote, the Act now makes rigid. The possible criminal penalties that can now attach to any unusual accounting mitigate the incentives to account for things elegantly, when the elegant way of keeping track of things requires some added explanation.”

Jan 23, 2007 | Comments | Tags: , ,

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