SEC

A&A

FASB Launches Review of Accounting for Leases

The Financial Accounting Standards Board (FASB) has begun reviewing its guidance on one of the most complex areas of off-balance sheet reporting, accounting for leases, Chairman Robert Herz told Forbes. The Securities and Exchange Commission (SEC) had requested that FASB review off-balance sheet arrangements, special purpose entities and related issues in a staff report issued in June 2005.
Technology

XBRL Software Developer Building Channel Seeks Accountants

Rivet Software, a leading developer of XBRL data tagging technology, is building a sales channel which will consist primarily of accountants and accounting firms.Advertisement
Technology

Companies Face Daunting Task of Managing E-mail

Many of the demands that Sarbanes-Oxley compliance has placed on accounting firms have developed into commercial opportunities for other industries.

Investigation Spreads to Spring-Loading Executive Stock Option Grants

Individuals familiar with the rapidly expanding investigation into executive stock options grants have told Reuters that the practice of spring-loading, or setting a grant date and exercise price to occur shortly before the release of positive corporate news, is being scrutinized along with the practice of backdating.Advertisement
Tax

Accounting Anomalies Continue for Computer Associates

Computer Associates (CA) will delay its fourth quarter and full year financial results, according to their announcement this week. CA was expected to post 2 cents per share earnings for their fourth quarter, according to the Register.

SEC Calls for Greater Disclosure of Executive Pay, Probes Options Dating

With companies now required under FAS 123 to disclose the value of stock option grants on their income statements for fiscal years beginning after December 15, 2005, the Securities and Exchange Commission (SEC) and members of Congress are pressing for more detailed disclosure of total executive compensation.

Accounting Manipulations at Fannie Mae Tied to Bonuses, OFHEO Says

A report by the Office of Federal Housing Enterprise Oversight (OFHEO) released on Tuesday charged senior management of the mortgage giant Fannie Mae with manipulating accounting to hit earnings targets in order to maximize their bonuses and other executive compensation, the New York Times reports.
Community News

PCAOB Proposes Rules for Registered Accounting Firm Reporting

The Public Company Accounting Oversight Board (PCAOB) voted Tuesday to propose rules for annual and special reporting of information and events by accounting firms registered with the PCAOB.Advertisement

Stock-Option Backdating Scandal Expands

Although not illegal, the accounting associated with executive stock option backdating “doesn’t feel right,” according to The CorporateCounsel.net. One company, UnitedHealth Group, may end up restating three years of financial results due to option back-dating. This accounting adjustment will see a change of some $286 million in net income for the company.
Practice

GM Restructures Controller’s Office; Hires Outside Financial Advisor

General Motors (GM) announced last week that it will combine the positions of Corporate Controller and Chief Accounting Officer as part of a restructuring of the Corporate Controller’s office. The company’s current controller, Paul W. Schmidt, will retire later in the year. Peter Bible, chief accounting officer, will resign effective June 1st but will assist the company during the transition to the new structure.

SEC Announces Next Steps for SOX Implementation Includes Smaller Companies

The Securities and Exchange Commission (SEC) on Wednesday announced a series of actions intended to improve the implementation of the Section 404 internal control requirements of the Sarbanes-Oxley Act 2002.
A&A

Financial Statements Still Significant In Predicting Bankruptcy

Researchers have found that financial ratios are still valuable tools in predicting bankruptcy.
Community News

Small, Midsize CPA Firms’ Interests at Stake in Latest SOX Saga

Small and midsized CPA firms may have a lot at stake in the latest Congressional wrangling over the onerous 404 internal reporting provision in the Sarbanes-Oxley (SOX) accounting reform law.

PCAOB to Look at Audit Efficiency in 2006 Inspections

The Public Company Accounting Oversight Board (PCAOB) announced Monday that their inspections of audit firms, which began this week, will focus on progress made by the firms toward efficient implementation of the Board’s Accounting Standard No. 2, An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements (AS-2).

SEC Cuts FY 2007 Registration and Transaction Fees

The Securities and Exchange Commission (SEC) announced last week that fees on securities transactions and registrations will be reduced by $1 billion in the fiscal year (FY) beginning October 1, 2006. Fees paid by issuers to register securities with the SEC will be reduced 71.3 percent. Fees applicable to most securities transactions will be reduced by 50.2 percent.“This is terrific news for investors,” SEC Chairman Christopher Cox said in a prepared statement. “Even by Washington’s standards, a billion dollars is a lot of money.

Mark Your Calendar: SEC Roundtable and Insights

The Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) have announced the panelists for the upcoming roundtable on May 10, covering second-year experiences with the reporting and auditing requirements of the Sarbanes-Oxley Act 2002 related to companies’ internal control over financial reporting. The following day, May 11, KPMG’s 404 Institute is offering a webcast on the lessons learned and insights from the roundtable.
Technology

Strange Bedfellows: Newt Gingrich and XBRL Software Community

At about the same time last week that Newt Gingrich, former speaker of the U.S.
Technology

Creative Solutions Gives XBRL a New Embrace

Creative Solutions, one of the first prominent accounting practice software vendors to embrace XBRL, the Internet-based technology that tags data items in financial reports so they can be immediately retrieved, has expanded its relationship with that evolving technology through an alliance with Rivet Software, a specialist developer of financial reporting systems.Advertisement

SEC Beefing Up Internal Reporting in Response to GAO Audits

The Securities and Exchange Commission (SEC), the agency charged with overseeing the financial reporting of public companies, is “redoubling” its efforts to shore up major deficiencies in its own financial reporting procedures and internal controls that were uncovered in an audit by the Government Accountability Office.Advertisement

SEC Approves 7 PCAOB Rules for Auditors

The Securities and Exchange Commission (SEC) has approved Public Company Accounting Oversight Board (PCAOB) ethics and independence rules concerning independence, tax services, and contingent fees, according to a statement issued Friday by the PCAOB.

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