Not a member? Subscribe Today | Forgot password?

Remember me

Derivatives

Boards Settle on Disclosure of Gross, Net Gap

Tammy Whitehouse December 19, 2011

Unable to agree on whether companies should present their derivative contracts covered by master netting agreements as gross or net positions, accounting rule makers have instead agreed to require disclosures aimed at helping investors sort out the difference

SciClone Raises Standards, and Eyebrows, With FCPA Deal

Jaclyn Jaeger November 29, 2011

SciClone Pharmaceuticals, a middle-weight drug development business with only 260 employees, struck a memorable blow for corporate compliance this month: The company agreed to profound changes in its anti-corruption program solely to settle a shareholder lawsuit. "I'm not aware of any other case, certainly in the FCPA area, where this sort of result has occurred," says Lucinda Low of the law firm Steptoe & Johnson.

FASB, IASB Part Ways on Netting Derivatives

Tammy Whitehouse June 21, 2011

The Financial Accounting Standards Board and the International Accounting Standards Board are considering taking two different tacks on rules for offsetting financial assets and financial liabilities, especially derivatives, on the balance sheet, a process known as "netting." Details inside.

Shortcut May Work on Some Late Hedges, PwC Says

Tammy Whitehouse June 14, 2011

PwC is getting lots of questions from clients on whether it is OK to use a shortcut method of accounting for certain late hedges that occurred due to changes in interest rates after the instrument had been issued. While the shortcut method is appealing, PwC advised companies to be careful, since it only applies in a small number of instances.

Delaware Judge Sides With Board on Merger Case

Jaclyn Jaeger June 14, 2011

In one of the more peculiar and complex corporate governance cases in recent memory, the Delaware Chancery Court has ruled that Massey Energy's board can proceed with a sale of the company despite a web of conflicts of interest in the transaction. The ruling could provide directors with an escape hatch from derivative litigation against them. Details inside.

As Regulators Tinker With New Rules for Derivatives, a Deadline Looms

Arielle Bikard June 14, 2011

Regulators now admit they will miss a July 16 deadline for adopting new rules for derivatives trading, but that won't stop some derivatives provisions of the Dodd-Frank Act from taking effect. As uncertainty lingers, regulators such as the Commodity Futures Trading Commission are reaching out to market participants for input while they attempt to complete the new rules.

Restatements by Small Companies Could Revive SOX 404 Debate

Tammy Whitehouse May 24, 2011

The number of non-accelerated filers restating financial reports jumped nearly 14 percent last year, while restatements at larger companies continued their three-year decline. That divergence is prompting some to wonder whether small filers' exemption from internal control audits is to blame. "It's an amazing coincidence if there isn't some kind of cause," says Don Whalen, director of research at Audit Analytics. More details inside.

SEC, CFTC to Host Roundtable on Derivatives Rule

Arielle Bikard April 12, 2011

The SEC and Commodity Futures Trading Commission will hold a joint public roundtable next month to debate the schedule for when they will adopt final rules under the Dodd-Frank Act to regulate the derivatives market. The rules focus on registration of dealers and participants and new disclosure requirements.

Debating Dodd-Frank: What's in a Name?

Arielle Bikard March 16, 2011

Members of the House Financial Services Committee held a hearing last week to consider five possible revisions to the Dodd-Frank Act, ranging from looser rules for derivatives trading to repealing a rule that companies must calculate and disclose median employee pay. More inside.

Dodd-Frank Rules on Bank Pay, More on SEC Agenda

Melissa Klein Aguilar February 24, 2011

The Securities and Exchange Commission is set to take up four items on its Dodd-Frank Act rulemaking agenda this week, including a proposal to limit risky incentive pay practices by financial firms and new rules on derivatives clearinghouses and the use of credit ratings in SEC filings.

Debate On Derivatives Regulation Heats Up

Melissa Aguilar February 14, 2011

Business groups are demanding an exemption for some from planned rules governing the over-the-counter derivatives market. They want non-financial companies that use derivatives to hedge risks to be able to avoid any new capital or margin requirements that are written into the rules.

Netting Proposal Would Gross Up U.S. Balance Sheets

Tammy Whitehouse February 02, 2011

Accounting rulemakers have proposed a new standard that could gross up balance sheets with derivative assets and liabilities by as much as $7 trillion, according to an analysis by Credit Suisse. The proposal would converge standards on "netting," or offsetting assets and liabilities as a net amount.

FASB Finishes Guidance on Embedded Credit Derivatives

Tammy Whitehouse March 10, 2010

If you were confused over the complexity of derivative and hedging rules as it relates to recent chaos in credit markets, perhaps the latest clarification from the Financial Accounting Standards Board will help clear things up.FASB published Accounting Standards Update No. 20101-11 – Derivatives and Hedging (Topic 815): Scope Exception...

FASB Makes Minor Fixes but Spotlights Derivatives

Tammy Whitehouse February 09, 2010

The Financial Accounting Standards Board has finalized some minor changes to the Accounting Standards Codification in Update 2010-8. While none of them are expected to result in significant changes in accounting practice, clarifications regarding embedded derivatives and hedging may require some close attention.The changes represent minor updates to accounting rules...

New Rules Governs Share-Lending Arrangements

Tammy Whitehouse October 16, 2009

Companies that enter into share-lending arrangements in connection with convertible debt offerings now have some new accounting rules to follow.The Financial Accounting Standards Board issued Accounting Standards Update No. 2009-15, which spells out new rules for how to account for share-lending arrangements when linked with convertible debt issuance or other...

Analysis Finds Benefit in Derivative Disclosures

Tammy Whitehouse July 28, 2009

Thanks to new disclosures hitting corporate financial statements, analysts are learning a little more about who uses derivatives to hedge different kinds of risks and how they do it.Fitch Ratings studied first-quarter 2009 filings of 100 companies from a range of industries and found derivative positions in excess of $296...

FASB Offers Derivative Rule Change to Address Credit

Tammy Whitehouse January 16, 2009

In the second of four short-term measures intended to help unclog credit markets, the Financial Accounting Standards Board has published its proposal to revise accounting rules related to embedded credit derivatives.The guidance would amend the requirements of Financial Accounting Standard No. 133: Accounting for Derivative Instruments and Hedging Activities to...

FASB Requires New Disclosures for Credit Derivatives

Tammy Whitehouse September 16, 2008

Sellers of credit derivatives are now required to provide a better view of the risks around such instruments following the completion of new guidance from the Financial Accounting Standards Board.The newly published staff position amends Financial Accounting Standard No. 133, Accounting for Derivative Instruments and Hedging Activity, to require new...

Compliance Week Podcasts ...

Every week we chat with leading thinkers in compliance, auditing, risk management, public policy and more. These short (10-15 minutes) interviews are free to all. Follow Compliance Week podcasts on iTunes.

Compliance Week LinkedIn Group

Compliance Week now has a companion group on LinkedIn, where members can network and discuss the compliance and governance news of the day. Open to all compliance professionals, free to join.

Survey of the Week

Deloitte is conducting their annual Look Before You Leap: Managing Risks in Global Investments survey to better understand the approaches companies are taking to address compliance and integrity-related risks in emerging markets.