SEC

A&A

SEC's Office of the Chief Accountant Release Staff Accounting Bulletin on Share-Based Payments

The Securities and Exchange Commission’s Office of the Chief Accountant and its Division of Corporation Finance announced on Tuesday announced the release of a Staff Accounting Bulletin relating to the Financial Accounting Standard’s Board (FASB) accounting standard for stock options and other share-based payments. Staff Accounting Bulletin No.
Community News

SEC Names 3 Academic Accounting Fellows

The Securities and Exchange Commission has selected three professors to serve as accounting fellows to interpret research for the Office of the Chief Accountant, the primary adviser to the SEC on accounting and auditing matters.In addition, the academic fellows will be involved in developing rule proposals, serving as liaisons with professional accounting and auditing standards-setting bodies and consulting with registrants on accounting, auditing, independence and reporting issues, the SEC announced Tuesday.The three fellows are Cheryl Linthicum, Ph.D., an associate professor of account

Mutual Fund Industry Critical of SEC Rule on Omnibus Accounts

Mutual fund executives say the Securities and Exchange Commission has not gone far enough to curb problems associated with omnibus accounting.The SEC did not require full disclosure of the shareholders who trade funds within omnibus accounts, a move that would have allowed firms to properly police themselves for marketing timing and other problems, according to Fund Action, a mutual fund industry newsletter.Earlier this month, the SEC voted 5-0 to allow mutual funds to voluntarily charge a 2 percent redemption fee on frequent trades to discourage market timing, one of the abuses at the c
Education & Careers

SEC Investor-Education Fund Loses Top Officials

With a year spent trying unsuccessfully to get the venture off the ground, the Securities and Exchange Commission's investor-education fund is losing its chairman and several directors, the Wall Street Journal reported."With real sadness, because we all recognize that the mission of helping individual investors be more successful...is so important, the Directors of Investors Education are all resigning," fund Chairman Charles Ellis wrote in a note to two advisory panels.
Tax

SEC Charges Time Warner with Fraud

The Securities and Exchange Commission this week charged Time Warner Inc. (formerly known as AOL Time Warner) with materially overstating online advertising revenue and the number of its Internet subscribers, and with aiding and abetting three other securities frauds. The Commission also charged that the company violated a Commission cease-and-desist order issued against America Online, Inc. on May 15, 2000. In a separate administrative proceeding, the Commission charged Time Warner CFO Wayne H. Pace, Controller James W.

SEC Official Fires Back at Critics of Accounting Reform Efforts

Remember way back in 2002 when corporate America was rocked by one accounting scandal after another? A top Securities and Exchange Commission official reminded reform critics on Friday that we are “not out of the woods yet,” the Washington Post reported.In remarks before the Directors' Education Institute at Duke University, SEC enforcement chief Stephen M.
Community News

Deloitte & Touche Unveils Corporate Director Education Program

Responding to the increasing demands, responsibilities, and heightened scrutiny of corporate board members, Deloitte & Touche LLP today announced the creation of a unique alliance with the University of Michigan Ross School of Business and The Directors' Network Inc. to develop and deliver customized, consultative education programs for corporate directors.This alliance with The Directors' Network and the University of Michigan aims to provide tailored corporate director education," said Greg Weaver, Deloitte & Touche U.S. national managing partner, Audit and Enterprise Risk Services.
Tax

SEC Charges Former Qwest CEO and Eight Others with Massive Fraud

The Securities and Exchange Commission this week charged Joseph P. Nacchio, former co-chairman and chief executive officer of Qwest Communications International Inc., and eight other former Qwest officers and employees with fraud and other violations of the federal securities laws.

SEC Announces Members of Advisory Committee on Small Public Cos

Securities and Exchange Commission (SEC) Chairman William H. Donaldson this week announced the appointment of 19 additional members of the SEC Advisory Committee on Smaller Public Companies. The additional appointments bring the total number of members of the advisory committee to 21. Chairman Donaldson previously had announced the appointment of Herbert S. Wander, a prominent Chicago securities lawyer, and James C. Thyen, President and CEO of Kimball International, Inc., as Co-Chairs of the advisory committee.

SEC Extends Time for Banks to Comply with Gramm-Leach-Bailey Act

The Securities and Exchange Commission announced on Tuesday that it issued an order further extending until Sept. 30, 2005, the compliance dates for banks with respect to certain broker registration requirements contained in the Gramm-Leach-Bliley Act (GLBA). The Commission does not expect banks to develop compliance systems to meet the terms of the "broker" exceptions until the Commission amends its rules.

SEC Boss Chastises Attorneys Over Fund Scandal

Securities and Exchange Commission Chairman William H.

CFOs Must Still File Internal-Control Certifications, Despite SOX Extension

The chief executive officers (CEOs) and chief financial officers (CFOs) of certain midsize and foreign public companies must still execute and file certifications about their internal controls under Section 302 of the Sarbanes-Oxley Act, even though the Securities and Exchange Commission (SEC) last week gave them an extra year to comply with Section 404, says one of the country's largest corporate governance consulting units.

SEC Grants One-Year Extension for SOX Compliance

The Commission has further extended the compliance dates for non-accelerated filers and foreign private issuers regarding amendments to its rules under the Securities Exchange Act of 1934 that were adopted on June 5, 2003, pursuant to Section 404 of the Sarbanes-Oxley Act. The amendments require a company to include in its annual reports a report by management on the company's internal control over financial reporting and an accompanying auditor's report. The Commission extended the original Section 404 compliance dates for all issuers in February 2004 (see Release No. 33-8392).

SEC Uncovers Wide-Scale Lease Accounting Errors

Where were the auditors?That is the question being asked as more than 60 companies face the prospect of restating their earnings after apparently incorrectly dealing with their lease accounting, Dow Jones reported.Companies in the retail, restaurant and wireless-tower industries are among those affected in what is being called the most sweeping bookkeeping correction in such a short time period since the late 1990s.Among the companies on the list are Ann Taylor, Target and Domino's Pizza.
Community News

SEC Chairman Announces New Appointments

Chairman William H. Donaldson last week announced the appointments of Joseph A. Hall to serve as Managing Executive for Policy and Martha B. Peterson to serve as Counselor to the Chairman at the Securities and Exchange Commission.“Joe and Martha each bring a wealth of experience and knowledge to their positions. I look forward to continuing to work with them to further the best interests of America’s investors,” Chairman Donaldson said.Joe Hall has been named Managing Executive for Policy.

SEC Sets Date for Internal Controls Roundtable

On Feb. 7, 2005, the Commission announced that it would host a roundtable discussion and would solicit written feedback regarding the experiences of registrants, accounting firms and others in implementing the new internal control requirements under Section 404 of the Sarbanes-Oxley Act of 2002. See Press Release 2005-13. Today the Commission announced that the roundtable will be held on Wednesday, April 13, 2005, in the William O.
Tax

SEC Files Emergency Action to Halt Ongoing Fraud by Northshore Asset Management

The Securities and Exchange Commission announced this week that it filed an emergency enforcement action to halt a fraud by Northshore Asset Management LLC (Northshore) and its three principals, concerning their misappropriation of assets of two hedge funds, Ardent Research Partners, L.P. (Ardent Domestic) and Ardent Research Partners, Ltd. (Ardent Offshore).
Tax

AICPA to Comment on PCAOB Proposal on Auditor Independence, Tax Services

The AICPA’s reaction was generally favorable to the rule proposed by the Public Company Accounting Oversight Board concerning tax services that can be offered to public company audit clients, but the Institute will submit a comment letter. Four circumstances are identified in the proposal that would be considered as impairing an auditor’s independence.

Bank of America to Settle SEC Mutual Fund Charges for $375 Million

The Securities and Exchange Commission on Wednesday announced a settled enforcement action against Banc of America Capital Management, LLC (BACAP), BACAP Distributors, LLC (BACAP Distributors) and Banc of America Securities, LLC (BAS) for entering into improper and undisclosed agreements that allowed favored large investors to engage in rapid short-term securities trading known as market timing in certain Nations Funds mutual funds and for fraudulently facilitating market timing and late trading in Nations Funds mutual funds as well as unaffiliated mutual funds.

SEC Considering Softening Impact of New Rules

The Securities and Exchange Commission may revise aspects of some major reform legislation to answer concerns that smaller companies are overburdened by the new requirements.But Chairman William Donaldson, in an interview with the New York Times, denied that he is backing away from an aggressive regulatory stance taken in the aftermath of Enron and other massive accounting scandals. He said he wants the rules to be more “cost-effective,” without weakening them."I'm not reacting to the 'pendulum swinging too far,"' Donaldson said in an interview.

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