Financial Reporting

SEC offers recommendations to improve financial reporting

Securities and Exchange Commission Chairman Christopher Cox has received the final report of an SEC advisory committee containing 25 recommendations to make financial information more useful and understandable to investors.Last year, Chairman Cox announced the creation of the SEC Advisory Committee on Improvements to Financial Reporting, comprised of members representing investors and other key constituencies in America's capital markets.

SEC roundtable on IFRS, GAAP, and subprime crisis

The Securities and Exchange Commission will host a roundtable on Monday, August 4 to analyze the performance of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (U.S. GAAP) during the recent period of market turmoil."This roundtable will provide the Commission with valuable insights from investors, issuers, auditors, and others about the way that both IFRS and U.S. GAAP performed in the context of the current pressures on the marketplace," said SEC Chairman Christopher Cox.
Technology

Levi Strauss blames profit drop on SAP enterprise software system

In its 10-Q filing with the Securities and Exchange Commission for the quarter that ended on May 25 this year, Levi Strauss said the $47 million drop in profits from the equivalent period last year reflected its implementation of an enterprise resource planning (ERP) system at the beginning of the quarter.

IFRS in the USA: Be Prepared!

By Darla Sycamore"Be Prepared" is the motto of the Scout movement and goes back to before the First World War. To be prepared means "you have to be prepared at any moment to face difficulties and even dangers by knowing what to do and how to do it."So how can you be prepared for the coming of International Financial Reporting Standards (IFRS) to America? The smart money is on the eventual adoption of IFRS at some time in the USA.

SEC roundtable looks at fair value in retrospect

Panelists at a July 9 Securities and Exchange Commission roundtable from affected communities that included auditors and corporate financial officers exchanged views on the challenges of implementing fair value standards, principally FAS 157, during the past few months, conducting what Thomas J.

Survey results show many companies are unprepared for XBRL

A new survey from Compliance Week suggests that many publicly held companies are barely aware of XBRL, the financial reporting technology the Securities and Exchange Commission is poised to impose on Corporate America later this fall. The SEC has already published a proposal to mandate XBRL for all companies by 2011, starting with Fortune 500 companies as soon as next spring. The public comment period on that proposed rule is already half over, and SEC Chairman Christopher Cox has repeatedly called for a final rule to be voted on and in place before he leaves office in January.
A&A

FASB issues Exposure Draft on Accounting for Hedging Activities

The Financial Accounting Standards Board (FASB) has issued an Exposure Draft (ED) of a proposed Statement of Financial Accounting Standards, Accounting for Hedging Activities — an amendment of FASB Statement No. 133.
A&A

FASB will add disclosure requirements to Statement 140

The Financial Accounting Standards Board (FASB) continued its review of Statement 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, (SFAS 140) and FASB Interpretation No.
A&A

FASB issues Statement No. 163, Accounting for Financial Guarantee Insurance Contracts

Last week The Financial Accounting Standards Board (FASB) issued FASB Statement No. 163, Accounting for Financial Guarantee Insurance Contracts. The new standard clarifies how FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises, applies to financial guarantee insurance contracts issued by insurance enterprises, including the recognition and measurement of premium revenue and claim liabilities. It also requires expanded disclosures about financial guarantee insurance contracts.
Technology

Understanding and using benchmark data

By Brian Hamilton, Developer, Profitcents.com“Benchmarks” are of interest to many types of financial professionals. The topic has been covered substantially lately because, if they are gathered and used properly, they can be helpful to the financial analysis process.As used here, “benchmarks” are financial metrics/ratios/results which show the average ranges of financial performance by companies in a given industry. There are many different types of financial benchmarks.

Test your financial reporting skills on the Revenue Recognition Challenge game

Congratulations! You've just been hired as the new CFO of Worldwide Faulty Enterprises where Murphy's Law is a corporate value. Only you can save the company and resuscitate its stock price. The Revenue Recognition Challenge is a new game about the complexities of revenue recognition. There are three key concepts presented in the game: Careful judgments are required to make the right revenue recognition and deferred revenue decisions.Constant vigilance is needed to keep revenue recognition up to date with business activities and events.
Technology

SEC unveils 'Financial Explorer' investor tool using XBRL

Securities and Exchange Commission Chairman Christopher Cox has announced the launch of the "Financial Explorer" on the SEC Web site to help investors quickly and easily analyze the financial results of public companies. Financial Explorer paints the picture of corporate financial performance with diagrams and charts, using financial information provided to the SEC as "interactive data" in eXtensible Business Reporting Language (XBRL).
Tax

New research provides resources on fraud prevention and financial reporting

Financial Executives Research Foundation (FERF), the research affiliate of Financial Executives International (FEI), has announced the release of two important new pieces of research designed to aid public company management and corporate boards in the efficient evaluation of their assessment of reporting issues and internal controls.A new FERF Study, entitled "What's New in Financial Reporting: Financial Statement Notes from Annual Reports," examines disclosures from 2006 annual reports for the 100 largest publicly-traded companies which used particularly innovative techniques to clearly a
Technology

SEC releases new XBRL analytical tool

XBRL US, Inc., the nonprofit consortium dedicated to the adoption of XBRL (eXtensible Business Reporting Language), a technology standard for the reporting of financial and business information in the U.S., strongly supports the Securities and Exchange Commission's (SEC) launch of an online, interactive tool that allows investors to instantly extract, compare, and analyze executive compensation for the largest 500 companies in the United States. This tool relies on the power of XBRL for the compensation data and underscores the flexibility and usefulness of "tagged" data.

Speeding toward convergence: Changes to come rapidly for accounting profession

By Allison M. Henry The pace of accounting standards convergence is accelerating and is being driven primarily by an investment community that is rapidly embracing International Financial Reporting Standards (IFRS), as promulgated by the International Accounting Standards Board (IASB). At the same time, technological changes, as illustrated by the growing acceptance of XBRL, are challenging the need for the traditional historical financial reporting model.
A&A

FAS 157 - Derivative valuation insights

After careful deliberation, the Financial Accounting Standards Board (FASB) voted in favor of implementing FAS 157 on time for financial assets and liabilities like derivatives. With FAS 157 taking effect as of November 15, 2007, a company reporting at year-end or any time after mid November will be obliged to consider FAS 157. Under FAS 157 companies must measure fair value by segregating observable and unobservable inputs into Level 1, Level 2, and Level 3 inputs: Level 1 inputs are market observed inputs such as quoted prices (e.g.

SEC relieves foreign companies of U.S. GAAP filing requirements

Having considered extensive and informative public comment on its June 2007 proposal, the Securities and Exchange Commission has unanimously approved rule amendments under which financial statements from foreign private issuers in the U.S. will be accepted without reconciliation to U.S. Generally Accepted Accounting Principles only if they are prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
A&A

Nonpublic companies get FIN 48 reprieve from FASB

At a recent board meeting, the Financial Accounting Standards Board voted to defer the effective date of FIN 48 for all non-public entities to periods beginning after December 15, 2007. The FASB instructed the staff to develop an FASB Staff Position which will have a 30-day comment period once it is released. This action is a welcome response to a recent letter issued by the Private Company Financial Reporting Committee (PCFRC) that recommended that FASB delay the effective date of FASB FIN No.

AICPA recommends SEC encourage use of IFRS

The American Institute of Certified Public Accountants has written a letter to the Securities and Exchange Commission recommending the SEC take comprehensive steps to harmonize U.S. and international financial reporting, including allowing American public companies to report financial results using international accounting standards."The AICPA supports the goal of a single set of high-quality, comprehensive accounting standards to be used by public companies in the preparation of transparent and comparable financial reports throughout the world," said AICPA Chairman Randy G.

Many CFOs could intentionally misstate financial statements, aren't aware of XBRL

In a national survey of chief financial officers and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International, 62 percent believe it would be possible to intentionally misstate their financial statement to their auditor. In addition, 47 percent of CFOs are not aware of eXtensible Business Reporting Language (XBRL), the new standard for tagged business information.

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