In the Security and Exchange Commission’s now-famous “Statement on the Relationship of Cooperation to Agency Enforcement Decisions,” the Commission outlined criteria it would consider when determining how much to credit firms for “self-policing, self-reporting, remediation and cooperation.” According to the statement, cooperative behavior actions by companies could result in reduced charges, lighter sanctions, mitigating language […]
CW Subscriber Only
Posted inFrom the Archive
Regulation Fair Disclosure, Information, And The Cost Of Capital
Study by three Wharton professors finds that the adoption of Reg FD caused a “significant reallocation of information-producing resources,” resulting in a welfare loss for small companies that subsequently face higher costs of capital.
Posted inEthics & Culture
Editorial: Ethics Is Not Enough; The Logic Of Appropriateness
My son has proved for me the theory of evolution. He’s basically a barbarian with a cuter haircut. Never is that more apparent than when he’s eating. Fingers in his food. Mouth packed with Cheerios. Spoon banging on the tray. Snout submerged in his bowl. Hands wiped on his shirt. Face encrusted. The floor coated. […]
Posted inBoards & Shareholders
Amendments to NYSE Governance Listing Standards
Corporate governance amendments proposed by the NYSE on August 3, 2004, which slightly slightly amend listing standards on issues of independence, compensation agreements, the definition of “executive officer,” and other items.
Posted inAccounting & Auditing
PCAOB Issues Long-Awaited Report On Big Four
The Public Company Accounting Oversight Board has completed its first-ever inspections of The Big Four accounting firms, and the results—though not a surprise—are not exactly pretty. Though PCAOB Chairman William McDonough went out of his way to praise the firms for their cooperation and noted that “none of our findings has shaken our belief that […]
Posted inAccounting & Auditing
What Happened To Regulation G?
What happened to Regulation G, the SEC rule intended to stop companies touting EBABS, or “Earnings Before All The Bad Stuff?” The regulation, adopted in January 2003, applies whenever a company publicly discloses a non-GAAP financial measure. All such disclosures must include a quantitative reconciliation of the differences “between the non-GAAP financial measure presented and […]
Posted inAccounting & Auditing
SEC Approves PCAOB Standard For Audit Documentation
Last week, the SEC finally approved the Public Company Accounting Oversight Board’s rule setting standards for the preparation and retention of documentation in connection with audit engagements. The rule, promulgated by Sarbanes-Oxley after the infamous Andersen shredding incident, mandates that accountants reviewing the books of public companies maintain the audit records for seven years. The […]
Posted inFrom the Archive
SEC Proposes One-Year Delay In Accelerated Filing
As rumored for weeks, the Securities and Exchange Commission yesterday proposed that it delay the final phase of its accelerated filing schedule, which would have forced companies to file annual reports within 60 days of period close, and quarterly reports within 35 days of period close. According to the proposal, the Commission expects to delay […]
Posted inInternal Controls
Avoiding Stumbles On The Path To SOX 404 Compliance
When engaged in an ambitious effort, be it climbing a mountain, building a house, or writing a novel, many people have a tendency to quicken their pace once the long-sought goal finally comes into view. The same holds true for Sarbanes-Oxley Section 404 compliance projects. Many months have gone into documentation, testing, and remediation, and […]
Posted inFrom the Archive
8-K Amendments Now Effective; Review Of First Filings
On Monday, Aug. 23, the SEC’s accelerated 8-K amendments became effective. As of that date, the number and type of events required to be reported on Form 8-K expanded significantly. The amendments also shortened the filing deadline for most items to four business days, providing a limited safe harbor from certain liabilities. The amendments represent […]
