News & Analysis as of

Corporate Governance Accounting

A&O Shearman

Judge dismisses most of SEC’s suit against SolarWinds over cybersecurity disclosures

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On July 18, 2024, U.S. District Judge Paul Engelmayer of the U.S. District Court for the Southern District of New York issued a comprehensive 107-page opinion that may have significant implications for the Securities and...more

Allen Barron, Inc.

Preparing to Sell Your Business

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There are several steps to follow when preparing to sell your business. It is important to allow plenty of time for planning and organization, as the process will usually require many months to a year or more. Why does it...more

Cooley LLP

SEC Chief Accountant issues statement on tone at the top

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In this statement, SEC Chief Accountant Paul Munter discusses the importance of setting the tone at the top. According to Munter, “academic research has ‘long stressed the crucial role that tone at the top, set by...more

Hogan Lovells

Disciplinary, litigation risk - AFRC highlights skill shortage in Hong Kong public interest entity audits

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The Accounting and Financial Reporting Council (AFRC) has published its first report on the public interest entity (PIE) audit market in Hong Kong. Reviewing its own survey of PIE auditors, the report highlights high vacancy...more

Cooley LLP

CAQ’s 2024 audit committee practices report discusses priorities and practices

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The Center for Audit Quality has released its 2024 “Audit Committee Practices Report: Common Threads Across Audit Committees.” The report highlights the top five audit committee priorities identified by committee members in...more

Ankura

Economic Crime and Corporate Transparency Act 2023: Key Considerations for Addressing Failure to Prevent Fraud

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The Economic Crime Bill received Royal Assent on 26 October 2023. Included in the Act is the failure to prevent fraud offence, under which large companies will be liable when a specified fraud offence is committed by an...more

Cooley LLP

SEC charges GTT with disclosure failures and control violations

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This press release announces settled charges brought by the SEC against GTT Communications, Inc., a multinational telecommunications and internet service provider, for failure to disclose material information about...more

Cooley LLP

SEC charges DXC with misleading non-GAAP disclosures and absence of non-GAAP disclosure controls

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The SEC has announced settled charges against DXC Technology Company, a multi-national information technology company, for making misleading disclosures about its non-GAAP financial performance in multiple reporting periods...more

Woodruff Sawyer

Earnings Management Red Flags: Part One

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Public companies are under tremendous pressure to meet or beat stock analyst earnings estimates. This pressure caused Warren Buffet to observe: “Managers that always promise to ‘make the numbers’ will at some point be tempted...more

Cooley LLP

SEC approves new PCAOB requirements for lead auditor’s use of other auditors

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At the end of last week, the SEC approved the PCAOB’s updated standards for audits that involve multiple auditing firms. SEC Chair Gary Gensler said that the amended standards “will strengthen the requirements for lead...more

Levenfeld Pearlstein, LLC

Common Governance Provisions in Accounting Firm Partnership Agreements

When it comes to accounting firm partnership agreements, governance is a key component. In this article, we discuss various governance provisions to consider when drafting an accounting firm partnership agreement....more

Cooley LLP

Raiding the cookie jar—“part of the art of the close”?

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In this Order, the SEC brought settled charges against Rollins, Inc., a termite and pest control company—think “Orkin”—and its former CFO for earnings management. In essence, the SEC alleged that the company adjusted the...more

Cooley LLP

Blog: Do companies time changes in accounting estimates to meet analyst forecasts?

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In this new paper by a group of academics from the University of Richmond (and elsewhere), the authors explore whether companies might be timing when they record changes in their accounting estimates (CAEs) to meet earnings...more

A&O Shearman

Court allows journalist to access historic accountant’s report held by company’s solicitors

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An English Court has relied on the principle of open justice to order that an accountant’s report, referred to in a six-year-old English court judgment, should be disclosed to a journalist as the document was relevant to a...more

Opportune LLP

Why Communication Between Reserve Engineering, Accounting & Boards Ensures Sound Corporate Governance

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Find out why improved communication between reserve engineering, accounting, and boards of directors ensures sound corporate governance....more

Cooley LLP

Blog: SEC charges Sequential Brands with failure to take goodwill impairment charges

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The SEC has just filed a complaint against Sequential Brands Group, Inc., a brand management company, for failing to take timely and appropriate goodwill impairment charges as required by GAAP and the federal securities laws,...more

Cooley LLP

Blog: Commissioners Peirce and Roisman criticize “unduly broad view” of “internal accounting controls” in Andeavor

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In October, the SEC settled charges against Andeavor, an energy company formerly traded on the NYSE and now wholly owned by Marathon Petroleum, in connection with stock repurchases authorized by its board in 2015 and 2016. ...more

Cooley LLP

Blog: World Economic Forum offers framework for valuing human capital—will it catch on?

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With the SEC presumably about to adopt enhanced disclosure requirements for human capital next week, this new report from the World Economic Forum in Davos, prepared in collaboration with consultant Willis Towers Watson,...more

Robins Kaplan LLP

Financial Daily Dose 11.26.2019 | Top Story: Viagogo buys ticket reseller from StubHub for $4 billion

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The merger craze keeps on keeping on, with news that Ebay’s selling secondary ticket marketplace StubHub to Viagogo, a smaller rival with a strong presence in Europe helmed by StubHub’s co-founder Eric Baker, for more than $4...more

Cooley LLP

Alert: 25 Considerations in Preparing for an IPO

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1. Experienced advisors - Choose experienced advisors, including lawyers, auditors and financial consultants (if necessary), and get them involved early. Advisors who work routinely with the SEC and investment bankers –...more

Cooley LLP

Blog: SASB issues sustainability accounting standards for 77 industries

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Way back in 2016, the SEC issued a Concept Release requesting comment on an enormous variety of potential changes to Reg S-K, including sustainability. As reported by BNA, then-Director of Corp Fin, Keith Higgins, advised...more

Cooley LLP

Blog: Should the prospect of CAM disclosures cause audit committees to rethink company disclosures?

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What are auditors and audit committees doing to get ready for the impending disclosure of CAMs in audit reports ? You remember that, under AS 3101, the new auditing standard for the auditor’s report, auditors will be required...more

Cooley LLP

Blog: Report On International Disclosure Of “Key Audit Matters”

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This study conducted by the Association of Chartered Certified Accountants reports on the results of a year of international reporting of “key audit matters,” the International Auditing and Assurance Standards Board’s analog...more

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