Articles | Compliance Week – Page 293
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When Revenue Recognition and Executive Pay Collide
Image: The impending new accounting standard for revenue recognition already has corporate accountants buzzing; now compensation committees should brace for impact. The standard redefines a host of terms under the heading of “revenue,” and that will affect pay plans. “To the extent executive compensation is triggered by company performance … ...
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ABA Seeks Clarity for Corporate Monitors
Image: The American Bar Association is mulling new standards for corporate monitors that effectively could make the monitorship process a lot easier, cheaper, and transparent for compliance officers working with them. “The standards go a long way toward facilitating a better relationship between the monitor and the company,” says John ...
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How to Respond to a China Antitrust Probe
Chinese regulators are stepping up enforcement of antitrust laws, resulting in more investigations of U.S. companies. “Foreign companies doing business in China need to know that Chinese antitrust authorities have far-reaching enforcement powers, and that the procedural safeguards are not the same as those which may apply in the United ...
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What Critics Say on Three Lines of Defense
The Three Lines of Defense model for risk oversight—business units in the first line, compliance in the second, internal auditors in the third—has been hugely popular in recent years. Proponents love it, and regulators have come to expect it. Critics, however, say the Three Lines model is too simplistic a ...
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Paths to Globalizing Your Code of Conduct
Image: A thoughtful and well-drafted Code of Conduct is the cornerstone of any strong corporate compliance program. Making that cornerstone strong enough to support a compliance program worldwide, spanning all manner of cultures—that’s the tricky part. “We’re constantly trying to figure out better ways to deliver our message while keeping ...
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When State Attorneys General Come Knocking
Sometimes a sheriff arrives from the federal government to take an enforcement action against your company, and sometimes a posse of state attorneys general follow behind, determined to investigate you too. Such is the case for JP Morgan, now being pressed by 19 states for more detail on its massive ...
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Why Boilerplate Battles Continue to Rage
Image: Again and again, with both guidance and comment letters, the SEC has urged companies to avoid using “boilerplate” language in disclosures—and companies never seem to embrace the message. “There is an extraordinary amount of boilerplate disclosure across topics and across industries,” says Jean Rogers, head of the Sustainability Accounting ...
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The Slog Begins for New Revenue Standard
Image: FASB’s effort to implement its new standard for revenue recognition by 2017 is bumping against business reality, as different parts of Corporate America grow vocal about their ability—or lack thereof—to manage the task. “A lot of companies are trying to correlate the messaging around a potential deferral and potential ...
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SEC, FINRA Dropping Hints on Risk
Compliance officers looking to read some tea leaves about what worries the Securities and Exchange Commission these days might want to skim the 2015 exam priorities that the SEC and FINRA have posted. That guidance applies foremost to financial firms, but “it’s only a matter of time before they require ...
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CW 2015 Preview: Assessing Antitrust Risks
Image: Enforcement of antitrust law is rising around the world, particularly in some of the most desirable markets for overseas expansion, including China, India, Brazil, and Mexico. Inside, we have an overview of how to assess your antitrust risks—which can be quite different from one country (or one product line) ...
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What a Good FCPA Audit Looks Like
Image: An audit of compliance with your company’s FCPA policies is no easy task. It requires skilled personnel, sophisticated data analytics, and an understanding of the difference between an audit and investigation. Inside, we walk through the fundamentals of all three. “The focus is really to create dialogue” with audit ...
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Planning Ahead to Manage M&A Due Diligence
Image: Lots of mergers look great on paper. In the real world, however, integrating corporate IT systems can not only be a headache for the IT department; core business functions can be compromised—including financial reporting or other tasks crucial to effective corporate compliance. “Smart companies are ready to start integrating ...
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Balancing Best Practices and Reality in Compliance
Everyone likes best practices in compliance, and everyone knows the U.S. Sentencing Guidelines are the cornerstone of an effective compliance program. The truth is not quite so perfect: Best practices can be impractical, and not all guidance about the Guidelines is clear. This week, guest columnist Susan Divers, a former ...
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More Hints on Audit Report 2.0
New international requirements for an expanded audit report are providing a teaser for what the United States should expect in coming years. The new international standard is modeled on an earlier U.K. version, and it’s similar to a proposal expected from the PCAOB this year. The details differ, but the ...
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OECD Updates Views on Governance
The OECD has received an earful about proposed revisions to its principles of corporate governance, guidelines it encourages countries to adopt much the way they already follow its principles for anti-corruption. Some say the revisions dwell too much on company-level reforms, and not enough at the country-level to allow flexible ...
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Cracking Open the Cuba Market
Image: U.S. companies eager to do business in Cuba face a long road in front of them, including a bewildering maze of compliance reviews and certifications before they can transact one dollar of trade. Revival of banking processes alone will be subject to a “blindingly deep amount of regulation and ...
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Focus on Equity Pay Plans This Proxy Season
Image: Worry over say-on-pay votes is out this proxy season; all the cool kids will be stressing over equity compensation plans instead. Proxy advisory firms are promising new levels of scrutiny for equity plans. “Companies have to be flexible because there are so many more moving parts to the methodology,” ...
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Smarter Assessments of Cyber-Risk
Image: Every compliance and audit executive wants to manage cyber-security risks. That assumes, however, that the whole organization agrees on what a cyber-security risk is. Taxonomies do exist to build a more disciplined approach to cyber-security. Try to take all steps to manage all such risks, and “it’s going to ...
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COSO Tacks Toward Cyber-Security
As cyber-security works its way onto the corporate board agenda, COSO is suggesting ways that its frameworks for internal control and risk management can be a starting point for companies to anticipate fast-emerging risks. “Just as the board is responsible for enterprise risk management, this is very similar,” says Mike ...
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How M&A Due Diligence Goes Wrong
According to data compiled by Bloomberg, $390 billion in merger deals fell apart last year. M&A plans can collapse for many reasons, from regulatory disapproval to clashing CEO egos. Most painful, however, is a deal is consummated quickly that later proves to be a mistake—thanks to poor due diligence. Inside, ...