Corporate boards and management have had to scramble to understand and implement the new rules under the Sarbanes-Oxley Act. Yet, as far-reaching as the changes Congress has made are, an even bolder agenda may be taking shape at the Securities and Exchange Commission. Recent developments indicate that the Commission is conducting investigations of corporate fraud, […]
CW Subscriber Only
Posted inBoards & Shareholders
Director Survey: Price Of Regulatory Compliance Is Up
Same story, different year: corporate executives and board directors are working harder than ever to meet the new burdens of compliance with federal securities law. A survey of Fortune 1000 companies released last week confirms that the workload for board directors increased yet again in 2004, as corporate America digests the governance reforms it has […]
Posted inFrom the Archive
Firm Sees Filing Delays As Sign Of Control Weaknesses
Companies continue to delay quarterly filings at an increasing pace, and a growing number of these postponements appear related to issues raised by Section 404 of the Sarbanes-Oxley Act, according to a recent study of third-quarter results by proxy research firm Glass Lewis. At least 61 companies with market caps exceeding $100 million sought more […]
Posted inFrom the Archive
Gap Between Earnings Releases, Quarterly Reports Narrows
In what appears to be a new development, companies might increasingly be distributing their earnings releases at the same time as their quarterly reports. That’s according to securities lawyers and investor relations experts, who cite audit committee oversight as one of the key factors driving the changes in the timing of disclosures. Wolff-Reid Traditionally, companies […]
Posted inFrom the Archive
More Execs Adopting Stock-Selling Plans, Or Disclosing More?
Are a growing number of top executives choosing to take advantage of a rule that allows them to sell their company’s stock on a regularly scheduled basis? It sure seems this way; in November alone, executives at nearly one dozen companies said they will take advantage of Securities and Exchange Commission rule 10b1-5. But experts […]
Posted inInternal Controls
SEC Delays SOX 404 Deadline For Some Companies
On Tuesday, Nov. 30, the Securities and Exchange Commission issued an “exemptive order” that would grant certain accelerated filers up to an additional 45 days to include in their 10-Ks internal control reports as required by Section 404 of the Sarbanes-Oxley Act. The Commission’s “exemptive order” applies to accelerated filers that have a fiscal year […]
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 […]
Posted inBoards & Shareholders
The Illusion Of Proxy Access Is Classic SEC Misdirection
Houdini could teach the SEC a thing or two. Yes, the great magician is dead; but, then again, so is the SEC’s draft proposal on proxy access. Or, at least it soon will be, given its convoluted triggers, heavy lobbying against it by the business roundtable, a threatened lawsuit should the SEC go ahead, and—most […]
Posted inFrom the Archive
October 2004 Equity Awards: Restricted Stock Usage Continues To Climb
Every month, Compliance Week publishes a list of the largest stock option grants and restricted stock awards during the previous period. The data and analysis are provided by compensation research firm Equilar, Inc. THE DATA Latest Data Download Top Equity Awards In October; Prior Months’ Data Data provided by Equilar, Inc., an independent provider of […]
Posted inAccounting & Auditing
Despite New Standards, Disclosure Still Rests On Judgment
Despite the recent flurry of new accounting standards, companies discovering accounting problems still have significant leeway and equal margin for error in disclosure. That’s according to Mary Ann Jorgenson, an attorney with Squire, Sanders & Dempsey, who recently delivered a presentation on the topic at the Practicing Law Institute’s conference on securities regulation. Jorgenson echoed […]
