The Securities and Exchange Commission voted to adopt amendments to implement the mandate of Section 401(a) of the Sarbanes-Oxley Act of 2002. Section 401(a) added Section 13(j) to the Securities Exchange Act of 1934, which requires the Commission to adopt final rules by Jan. 26, 2003, to require each annual and quarterly financial report required […]
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Posted inAccounting & Auditing
Conditions for Use of Non-GAAP Financial Measures
Section 401(b) of the Sarbanes-Oxley Act of 2002 directs the Commission to issue final rules by Jan. 26, 2003, requiring that any public disclosure or release of “pro forma financial information” by a public company be presented in a manner that (1) does not contain an untrue statement of a material fact or omit to […]
Posted inBoards & Shareholders
Disclosures Regarding Audit Committee Financial Experts, Ethics Code
The Securities and Exchange Commission voted to adopt rules implementing Sections 406 and 407 of the Sarbanes-Oxley Act of 2002. These rules will require public companies to disclose information about corporate codes of ethics and audit committee financial experts. The rules will require a company subject to the reporting requirements of the Securities Exchange Act […]
Posted inFrom the Archive
Insider Trades During Pension Fund Blackout Periods
Section 306(a) of the Sarbanes-Oxley Act of 2002 prohibits any director or executive officer of an issuer from, directly or indirectly, purchasing, selling or otherwise acquiring or transferring any equity security of the issuer during a pension plan blackout period that prevents plan participants and beneficiaries from engaging in transactions involving issuer equity securities held […]
Posted inAccounting & Auditing
Principles-Based Approach To U.S. Standard Setting
Original FASB proposal for a principles-based approach to standard setting to improve the quality and transparency of financial accounting and reporting in the United States.
Posted inFrom the Archive
Accelerated Filing Deadlines for Periodic Reports
On Sept. 5, the SEC adopted amendments to accelerate the filing of quarterly and annual reports under the Securities Exchange Act of 1934. Details are outlined below: REFERENCE Title Acceleration of Periodic Report Filing Dates and Disclosure Concerning Website Access to Reports File Number S7-08-02 Release Number 33-8128 Complete Text Complete text of the proposed […]
Posted inFrom the Archive
Certification of Disclosure
On July 30, the Sarbanes-Oxley Act of 2002 was enacted. The act included a certification requirement that was different from the initial certification proposal outlined by the SEC on June 17. Below are some of the changes to the proposal, which the SEC must issue and adopt by Aug. 29: REFERENCE Title Certification of Disclosure […]
Posted inFrom the Archive
Certification of Disclosure in Companies’ Quarterly and Annual Reports
On June 12, the SEC proposed rules that would force CEOs to “personally vouch” for their companies’ public disclosures, and would increase the number of items to be reported in current reports (Form 8-K). Those current reports would also need to be filed within two business days, instead of the current five to 15 business […]
Posted inInternal Controls
Text Of Sarbanes-Oxley Section 404: Management Assessment Of Internal Controls
(a) RULES REQUIRED- The Commission shall prescribe rules requiring each annual report required by section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) to contain an internal control report, which shall– (1) state the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and […]
Posted inInternal Controls
Complexity, Integration Are Barriers To Compliance
Buried deep in a recent study of financial-services compliance was some interesting information about typical barriers that prevent companies from achieving “first-rate” compliance. Most of the data collected in the study, which was conducted by PricewaterhouseCoopers and the Economist Intelligence Unit, was focused on financial institutions, and was therefore not entirely relevant to most CW […]
