As FASB wraps up some major projects in coming months, it is starting to wonder: what’s next? The board plans to publish a discussion paper seeking input on what revisions should be added to the agenda, but it will likely focus on clarifications to revenue recognition, income taxes, business combinations, employee benefit plans, and more. “A first step in identifying the right issues is asking our stakeholders what they think,” FASB member Russ Golden said. More inside.
The SEC has proposed a new pay-for-performance disclosure rule, requiring companies to report the relationship between compensation paid to named executive officers and the Total Shareholder Return of both the company and its peer group. The proposal marks the first time the Commission will require data tagging in the XBRL format beyond financial statements. More inside.
Managing cyber-security risks is one of the most pressing problems facing businesses today. Absent some technological magic bullet (which won’t be found any time soon), that leaves companies forced to protect cyber-security through better process. What does that mean? How can privacy, compliance, and internal audit band together to lead business units to that goal? Compliance Week columnist Jose Tabuena offers his suggestions inside.
What whistleblower protections exist overseas that are comparable to those under the Sarbanes-Oxley and Dodd-Frank Acts? Compliance Week did a spot-check of major countries, and the results of our round-the-world tour are inside. “There’s no country in the world whose whistleblower protection laws come close to what we’ve developed in the United States,” says Philip Berkowitz of the law firm Littler Mendelson.
The longer a global supply chain grows, the less assurance corporations have in the integrity and security of their products and operations. Now NIST is trying to pierce that fog with new guidance, and compliance officers in the private sector might want to take notice. “Cyber-supply chain risk management is still a fairly nascent discipline,” says Jon Boyens, a senior adviser at NIST. “It’s still developing.”
The mantra from regulators when uncovering potential violations of the Foreign Corrupt Practices Act is clear: self-report early and often. Still, companies might want to take a more nuanced approach to that decision, and some legal voices maintain that occasionally shareholders are best served by staying silent. “Right now, I don’t think Corporate America has enough incentives to self-report,” says Peter Reilly, law professor at Texas A&M University. More inside.
The respite from litigation that audit firms have enjoyed the past few years may be ending. A recent study found class-action lawsuits alleging accounting improprieties rose in 2014 after two of the lightest years in the past decade. While only a tiny fraction of those class-action filings are directed at audit firms, accounting-related claims today may herald more strain for audit firms tomorrow. More inside.
For all the political controversy still surrounding the Volcker Rule, its biggest compliance obligation—implementing new controls and training to root out forbidden trading—has a looming deadline in July. “You’ve got to build an infrastructure,” says David Freeman of the law firm Arnold & Porter. “That’s a bigger effort than it sounds.” What should your program look like by now? More inside.