Public Companies
Showing 177–188 of 188 results
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Building a better audit – New standard requires additional quality review
June / July 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 677
Abstract: Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 7, Engagement Quality Review (AS7), requires more robust concurring or second partner reviews of audit engagements and interim reviews. This article lists specific items that engagement quality reviews are expected to evaluate, and explains documentation requirements. Although the PCAOB has made an effort to avoid turning concurring reviews into second audits, public companies need to prepare for some slight changes in the audit process.
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Statistical analysis: Your fraud early warning system
June / July 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 397
Abstract: Auditors use a variety of techniques to detect occupational fraud, including statistical analysis. One such technique is “Benford’s Law,” which rests on the assumption that smaller digits occur more frequently than larger ones in sets of random data. When fraud perpetrators attempt to manipulate numbers in certain financial documents, this pattern becomes skewed. In fact, it’s nearly impossible to manipulate data so that it conforms to Benford’s Law. This doesn’t prove fraud, but can indicate that further investigation is necessary.
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Does your company meet credit data security requirements?
June / July 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 504
Abstract: Contrary to popular belief, the Payment Card Industry Data Security Standard (PCI DSS) isn’t only for companies that process a lot of credit card payments. PCI DSS establishes minimum requirements for securing sensitive cardholder data, and even one transaction is enough to compel compliance. The penalties for noncompliance can be severe. Companies are strongly encouraged to review the PCI DSS framework and ensure their organizations meet its 12 basic requirements and validate compliance with the standard. This will help them avoid penalties, as well as liability for data security breaches and potentially irreparable damage to their reputation.
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Rounding up recently released accounting standards
June / July 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 904
Abstract: The Financial Accounting Standards Board (FASB) has released a flurry of new standards — and guidance on old ones — in recent years. Some of the changes clarify existing standards, and others strive to converge U.S. Generally Accepted Accounting Principles (GAAP) with International Financial Reporting Standards (IFRS). This article discusses updates that expand fair value disclosures, relax subsequent events disclosures and consolidate variable interest entities. A sidebar looks at other issues that FASB and the International Accounting Standards Board are currently reviewing.
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How to respond to an SEC comment letter
April / May 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 458
Abstract: When it comes to anxiety-producing correspondence, a letter from the SEC ranks right up there with one from the IRS. Although legal advisors and auditors should be notified right away, there’s no reason to panic when receiving an SEC letter. In many cases the reviewer is simply seeking an explanation. The company needs to contact the SEC so it understands what it’s looking for. In many cases, the SEC’s concerns can be addressed informally, without the need for an immediate restatement.
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Proxy disclosure rules are finalized
April / May 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 381
Abstract: In December 2009, the SEC issued final proxy disclosure amendments. These include significant changes from the proposed rules that the SEC issued in July 2009 related to compensation policies, leadership structure and risk, and reporting of voting results.
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Management buyouts demand board vigilance
April / May 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 655
Abstract: Courts often are deferential to directors in cases involving mergers and company sales. But, as a decision by the Delaware Chancery Court shows, that deference has a limit. The plaintiffs claimed that the company’s CEO and directors had breached their fiduciary duties and that the board had committed waste. In refuting the defense, the court pointed to three key facts that “make it impossible to dismiss the complaint.” This case underscores the need for boards to take an active role in negotiations — particularly when a controlling shareholder is involved.
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Tax Court ruling – Can you deduct a subsidiary’s expenses?
April / May 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 974
Abstract: In a 2009 decision, the U.S. Tax Court held that a company couldn’t deduct expenses it had paid on a subsidiary’s behalf, because they weren’t ordinary and necessary to its own trade or business. This opinion provides a guide for distinguishing between deductible expenses and capital contributions. The court suggested that the outcome might have been different if the taxpayer had operated other businesses whose reputations or credit ratings would have suffered as a result of its failure to cover its subsidiary’s obligations. Indeed, a sidebar to this article illustrates such a case, in which a deduction was allowed.
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How subsequent events affect your financial statements
February / March 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 514
Abstract: Financial statements provide a snapshot of a company’s financial condition on the balance sheet date. But in the real world, a company’s assets, liabilities and net worth are in a constant state of flux. What happens when, after financial statements are prepared, events occur that have a material impact on the numbers? Recently, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 165, now known as Accounting Standards Codification TM (ASC) Topic 855, Subsequent Events. It doesn’t make significant changes to the principles that apply to subsequent events, but underscores management’s responsibility for identifying and disclosing such events.
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Revenue gets the recognition it deserves
February / March 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 540
Abstract: Recently, the Financial Accounting Standards Board (FASB) finalized two new revenue recognition rules that affect companies. The rules, covered in two Accounting Standards Updates, are part of a broader effort by FASB and the International Accounting Standards Board to clarify principles for recognizing revenue and develop a joint revenue recognition standard. For many companies, the proposed framework won’t require major changes to their accounting practices, but in some industries the impact may be significant.
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Merger mysteries – Accounting for business combinations
February / March 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 775
Abstract: Merger and acquisition activity has slowed over the past two years, but may be on the verge of a comeback. This could be a good time for companies contemplating an M&A to review the applicable accounting standards. The Financial Accounting Standards Board (FASB) has issued a series of Staff Positions and Accounting Standards Updates to clarify earlier Statements regarding the measurement of fair value. Current rules regarding treatment of contingent considerations are also discussed, along with FASB’s new FSP FAS 141(R)-1, which addresses the recording of contingent assets and liabilities.
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D&O insurance – Is your company’s policy up to snuff?
February / March 2010
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 817
Abstract: In the current economic environment, disgruntled shareholders, investors and other interested parties commonly file lawsuits or claims against a public company’s directors and officers — exposing their personal assets to significant risk. Even innocent parties can be overwhelmed by the cost of mounting a defense. Directors and officers (D&O) insurance can provide a vital safety net — if it offers appropriate coverage. This article contains a checklist of items to look for in a D&O policy, while a sidebar discusses the three types of coverage in a single policy.