Few would dispute that these are remarkable times in the history of capital markets, as public companies undertake major accounting changes to meet new regulatory requirements. But to what lengths might companies go to protest? Exasperated by the enormity of it all—and resigned to the inevitability that they’ll have unfavorable reports to file—some public companies […]
Tammy Whitehouse
Posted inBoards & Shareholders
What Management Might Expect From Audit Committees
Management may soon face more skeptical audit committees as accounting experts offer new advice on when a management decision to override internal controls could be a red flag for fraud. The American Institute of Certified Public Accountants has issued new guidance for audit committees that describes six key measures committees should take to help guard […]
Posted inAccounting & Auditing
Burden May Ease For Foreign Filers, But Not Standards
Non-U.S. companies may get some relief on the deadlines and reporting redundancies for complying with new U.S. requirements, but no leniency on the requirements themselves. That’s the message from William H. Donaldson, chairman of the U.S. Securities and Exchange Commission in a recent speech at the London School of Economics and Political Science. Donaldson Donaldson […]
Posted inInternal Controls
SEC, PCAOB Provide More Answers On Internal Controls
Last week, the Securities and Exchange Commission and the Public Company Accounting Oversight Board provided additional answers to questions about Section 404 of The Sarbanes-Oxley Act. Both statements, published in the form of “frequently asked questions,” addressed the recent extension provided to smaller issuers in meeting internal control requirements. In November 2004, the SEC gave […]
Posted inAccounting & Auditing
SEC’s Beller: Improve Processes, Don’t Just Comply
As Sarbanes-Oxley begins affecting corporate reporting, companies should focus not merely on the tasks and costs of compliance, but on improving finance processes to bolster investor confidence. That was the advice of Alan Beller, director of the Corporate Finance Division of the U.S. Securities & Exchange Commission, at a recent Stanford Law School symposium on […]
Posted inInternal Controls
COSO To Address Small Business Internal Controls
A private sector group is answering the U.S. Securities & Exchange Commission’s call for help in offering guidance to smaller companies wrestling to comply with new regulatory requirements. The Committee of Sponsoring Organizations is launching a project to give smaller companies some pointers on how to achieve compliance with new laws and regulations, most notably […]
Posted inAccounting & Auditing
PCAOB Revises Budget; IAASB, AICPA Issue Standards
The Public Company Accounting Oversight Board has revised its budget for 2005, reducing its projected expenditures by some $15.4 million by reducing its hiring projections, reducing travel and consulting fees, and delaying implementation of information technology projects. The Board had approved a budget in October assuming $152.5 million in revenue; however, nine weeks later the […]
Posted inAccounting & Auditing
PCAOB Meets Today To Consider New Rules Separating Audit, Tax Services
The Public Company Accounting Oversight Board begins deliberations today on whether to draft rules that would restrict accounting firms from providing their audit clients with tax services. Regulatory direction and public remarks by members of the Board and the Securities and Exchange Commission have hinted for months that accounting firms should brace themselves for the […]
Posted inAccounting & Auditing
EU Finance Execs Scramble To Meet IFRS Deadline
While U.S. financial executives are buried in Sarbanes-Oxley compliance, their counterparts in Europe are racing against a deadline to overhaul entire accounting methods—a shift Ernst & Young called “the biggest change in financial reporting in a generation and on a global basis.” The European Union has set Jan. 1, 2005, as the date by which […]
Posted inAccounting & Auditing
Standard On Inventory Costs Issued; More From IASB, EU
Before breaking for the Thanksgiving holiday last week, the Financial Accounting Standards Board issued FASB Statement No. 151, Inventory Costs, to specify that companies should report abnormal inventory amounts as charges against earnings in the current period. Abnormal inventory includes idle facility expense, freight, handling costs and wasted materials. FASB issued the statement to make […]