SEC May Delay New Accounting Rules for 6 Months

It’s no secret that many US firms are struggling to understand and comply with new rules regarding stock options. The costs of audits and additional staffing to help ensure compliance continue to rise. Businesses are starting to complain. And the federal government is starting to listen.

This week according to today’s Wall Street Journal, the Securities and Exchange Commission (SEC) could announce a six-month delay in implementing new rules requiring companies to include stock options granted to employees as compensation as an expense in their earnings reports.

The final phase of the Sarbanes-Oxley Act of 2002 to limit corporate fraud and financial deception has turned out to be far more expensive and complex than anticipated.

Whether the regulations keep companies on the straight and narrow as they were intended or suppress business climate as some have begun suggesting has yet to be determined. If the SEC delays implementing the new rules it may take even longer to discover the legacy of Sarbanes-Oxley.

You may like these other stories...

Companies are taking their time transitioning to the 2013 Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework, even though the updated guidance is set to take effect...
By Jason BramwellOfficials from the Public Company Accounting Oversight Board (PCAOB) said on August 19 that deficiencies were found in all sixty of the broker-dealer audits conducted by audit firms that the PCAOB inspected...
By Frank Byrt and Anne RosivachThe Public Company Accounting Oversight Board (PCAOB) issued a cautiously optimistic report on US auditors' performance, saying the Board found a reduced rate of "significant audit...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.