The U.K. Financial Services Authority has admitted that it didn’t pay enough attention to the quality of corporate governance at financial firms prior to the credit crisis. The regulator said it had always put a lot of emphasis on good governance but added, “we recognize that our focus on the quality of governance and the […]
Global Glimpses
Posted inBoards & Shareholders
Infineon Revolt Becomes Governance Test Case
The battle between German electronics company Infineon and rebel shareholders is rapidly turning into a test case of the country’s corporate governance practices, with more shareholders now opposing the company’s choice of supervisory board chairman. Infineon has run into trouble over its desire to appoint Klaus Wucherer to chair its supervisory board. Wucherer has been […]
Posted inAccounting & Auditing
Audit Firms Told to Appoint Non-Execs
Big U.K. audit firms will have to involve independent non-executive directors in their decision-making processes for the first time under a new code aimed at improving their corporate governance practices. Core aims of the code are to boost investor confidence in the quality of listed-company audit work and reduce the risk of a big accounting […]
Posted inEurope
Europe Changes Anti-Trust Procedures
The European Commission has changed the way it deals with anti-trust investigations and says it will now open formal proceedings against companies more quickly. Under a new set of procedures, the Commission will also publicly announce when it starts formal proceedings against companies and when it has sent them a formal “Statement of Objections” setting […]
Posted inAccounting & Auditing
Convergence, Financials to Dominate Global Agenda
The two big issues on the international accounting agenda this year will be the treatment of financial instruments and further steps toward global convergence, according to a new report from credit agency Fitch Ratings. While several countries are set to fully adopt International Financial Reporting Standards this year, the report says that the Securities and […]
Posted inFrom the Archive
Much M&A Accounting Expensive and Irrelevant
International accounting rules on the treatment of mergers and acquisitions are difficult and expensive to implement and result in disclosures that investors don’t want, according to a study from U.K corporate regulator the Financial Reporting Council. The FRC said the International Financial Reporting Standard on business combinations was “poorly applied” because companies still didn’t understand […]
Posted inFrom the Archive
Australia Goes Soft on Exec-Pay
A government-backed review of board remuneration in Australia has decided not to recommend a cap on boardroom pay or to give shareholders a binding vote on pay levels. The Productivity Commission, an independent research and advisory body to the government on economic and social issues, was asked to review board pay last March after the […]
Posted inFrom the Archive
U.K. Warns Companies Over IFRS 8 Concerns
The U.K.’s financial reporting watchdog has warned companies to improve the way they implement a new accounting standard on segmental reporting. The Financial Reporting Review Panel said it has told “a number of companies” to provide additional disclosures after checking how they had complied with IFRS 8, “Operating Segments.” IFRS 8 tells companies to give […]
Posted inFrom the Archive
India Overhauls Corporate Governance
Indian companies will have to raise their boardroom practices to comply with a new corporate governance code aimed at reforming corporate India after the Satyam scandal last year. The new code, produced by the Ministry of Corporate Affairs, tells listed companies to separate the role of chairman and CEO, change their external auditor every five […]
Posted inFrom the Archive
Japan Needs More Independent Directors, Report Says
Japan’s corporate laws should be reformed to make the country’s rules on independent directors clearer, the Asian Corporate Governance Association says. The lobby group used a new position paper on governance reform to argue that Japan’s current legal definition of what constitutes an “outside director” is “weak and often confusing to foreign investors and others.” […]