As the Securities and Exchange Commission considers new rules on executive compensation, it will focus on disclosure, not salary caps, said Chairman Christopher Cox. Cox “This is not about wage controls,” he said in an address last week to the Economic Club in New York. “It’s about wage clarity—information that’s clear, complete and comprehensible.” Cox […]
Tammy Whitehouse
Posted inAccounting & Auditing
FASB Withdraws Single Income Statement Proposal; More
Derailed by its international counterpart’s change of course, the Financial Accounting Standards Board has put off a planned controversial proposal that would have required companies to present all income in a single statement of comprehensive income. The plan is not dead, however, but placed on hold pending further board determinations about how it and the […]
Posted inFrom the Archive
SEC Accountant Offers Guidance On Option Assumptions
Companies that are fine-tuning the assumptions necessary to value stock options may want to pay heed to Securities and Exchange Commission Associate Chief Accountant Alison T. Spivey, who recently warned of two methods for setting volatility assumptions that would not pass SEC muster. To comply with FASB Statement 123R, which requires companies to expense stock […]
Posted inAccounting & Auditing
Auditor Liability Caps, PCAOB Enforcement, IFRS, More
Accounting ethics professionals are still open for comments through Dec. 15 on their proposed guidance for how auditors should seek liability protections in private company audits without compromising their independence. The Professional Ethics Executive Committee of the American Institute of Certified Public Accountants will meet in late January to finalize the guidance, said Lisa A. […]
Posted inAccounting & Auditing
Comments On Rules vs. Principles Highlight Challenges
Regulators say they’re committed to creating a less complex, more principled system of financial reporting, but they need more cooperation from accountants and preparers. Accountants, on the other hand, say they’re pleased with regulators’ interest in simplifying accounting rules, but need some cues from regulators that they’ll not be punished in the enforcement arena for […]
Posted inInternal Controls
Board Reiterates Top Down, Risk-Based 404 Guidance
With a full year of audit firm inspections under their belt, auditing regulators issued a report last week offering advice on how accounting firms can audit more efficiently and effectively in the post-Sarbanes-Oxley world. The Public Company Accounting Oversight Board acknowledged the significant challenges companies and their auditors faced in the first year of implementing […]
Posted inInternal Controls
Board Reiterates Top Down, Risk-Based 404 Guidance
With a full year of audit firm inspections under their belt, auditing regulators issued a report last week offering advice on how accounting firms can audit more efficiently and effectively in the post-Sarbanes-Oxley world. The Public Company Accounting Oversight Board acknowledged the significant challenges companies and their auditors faced in the first year of implementing […]
Posted inAccounting & Auditing
Survey: Economic Crime On The Upswing; More
Nearly half of companies worldwide say they’ve been a victim of some form of economic crime over the past two years, an increase of more than 20 percent. That’s according to a recent survey by PricewaterhouseCoopers of more than 3,600 companies in 34 countries, which showed the average financial damage to companies who experienced tangible […]
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Companies Look For Ways To Apply SOX Lessons
At an annual conference last week sponsored by Financial Executives International on current financial reporting issues, panelists shared tips and best practices gleaned from their first-year experience complying with Section 404 of Sarbanes-Oxley. Hanish “The No. 1 key to sustainability for our company is the tone at the top,” said Arnold Hanish, chief accounting officer […]
Posted inAccounting & Auditing
FEI Attendees Debate Key Accounting Issues
The Financial Executives International convened its annual conference on Current Issues in Financial Reporting last week at the New York Hilton, bringing together financial statement preparers and users, standard setters, rule makers, and academics to update and debate the emerging trends in corporate financial reporting. Lattice vs. Black-Scholes Spieler As companies implement new accounting rules […]