Category: Securities

More Women on Boards: It’s the Economy, Stupid

by Cydney Posner When the Chair of the SEC and the editors of Bloomberg both think it’s worth getting on their soapboxes to promote the same issue, maybe it’s time for public companies to pay attention. The issue? Women on Boards. Earlier this month, the editors of Bloomberg published “Companies […]

Monumental effort by some to comply with conflict minerals rule: is it helping or hurting?

by Cydney Posner For some companies, compliance with the SEC’s conflict minerals rule required a truly monumental effort. According to this article in the WSJ, one company identified over 38,000 suppliers– pause on that a moment: thirty-eight thousand suppliers! – of components for its products that might contain conflict minerals (tin, tantalum, […]

Good news for companies adopting retrospective approach to new FASB revenue recognition standard

by Cydney Posner One of the critical questions that companies are facing under FASB’s new revenue recognition standard is whether companies that elect to follow a retrospective approach (applying the standard to both current and prior years — e.g., 2016 and 2015 revenues in addition to 2017) will be required […]

Academic study shows increases in insider sales prior to public release of certain SEC comment letters

by Cydney Posner Articles in Compliance Week and Forbes  report on a recent academic study showing unusually high levels of stock sales by insiders in the period prior to public release of SEC comment letters that addressed revenue recognition issues, a topic that can often spell trouble at many companies. The level of […]

SEC sends a message — to executives and their companies

by Cydney Posner In October  2013, SEC Chair Mary Jo White gave a speech at the Securities Enforcement Forum in which she declared an “enforcement mission” of the SEC to be implementation of the “broken windows” theory of crime deterrence made famous decades ago in NYC: “The [‘broken windows’] theory is […]

Whether 1992 or 2013 version of COSO framework — disclose in management’s and auditor’s internal control reports

by Cydney Posner Last week, I posted a piece regarding the “squishy” deadline  (to borrow the term of art coined by the COSO Chair) for implementation of the new 2013 COSO internal control framework. As you may recall, the original 1992 COSO internal control framework is deemed by COSO to […]

Publish the list — hold the irony

by Cydney Posner As required by section 1502(d)(3)(C) of Dodd-Frank, the U.S. Commerce Department has compiled and posted (albeit more than a year late) a list of ”all known conflict mineral processing facilities worldwide.”  Without the slightest hint of irony, Commerce notes that the list does “not indicate whether a […]

Is it OK to delay implementation of the new COSO framework?

by Cydney Posner With the original 1992 COSO internal control framework deemed by COSO to be “superseded” as of December 15, 2014, companies are fast approaching the deadline for adoption of the updated 2013 COSO framework, But is it really a deadline?  As quoted in this article in Compliance Week, COSO […]

Stinging dissent by Commissioner Aguilar: Is the SEC making fraudulent behavior look like an innocent mistake?

by Cydney Posner Following on the heels of a case, discussed in this post,  in which a CEO and CFO were charged with internal control and books and records violations (but no typical financial statement fraud allegation), comes another case against a CEO and CFO that likewise concluded with violations of […]

FASB issues new ASU to fill the gap in GAAP guidance regarding going-concern uncertainties

by Cydney Posner Yesterday, FASB issued an Accounting Standards Update (ASU) regarding the disclosure of uncertainties about a company’s ability to continue as a going concern.   ASU 2014-15  “provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures […]