FASB issues an update for accounting for certain performance-based awards

by Cydney Posner FASB has released an accounting standard update related to the accounting for certain performance-based equity awards under FASB ASC Topic 718, Compensation—Stock Compensation. The title of ASU 2014-12 tells the story: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be […]

Stock buybacks revisited

by Cydney Posner Lots of companies have been buying back their stock recently, either on their own initiative because, for example, management thinks the shares are undervalued, or at the urging, or sometimes insistence, of euphemistically termed “stockholder activists” to increase the market price of the shares. According to this […]

Are annual performance-based incentives the “new black”?

by Cydney Posner As reported in this article in the WSJ, Mercer has released a new study of CEO compensation.  The key results: “95% of S&P 500 company chief executives earned a short-term incentive payout in 2013, and the median incentive payout was 115%.”  For a Mercer executive, the data raise […]

The end of “development stage” entities, at least for accounting purposes

by Cydney Posner FASB has approved a new accounting standard update to ASC 915, Development Stage Entities. This ASU (Update No. 2014-10), which could be very helpful for a number of companies that are not yet generating much revenue, is subject to early adoption. FASB defines a “development stage entity” as […]

Are the securities laws a First Amendment free zone?

by Cydney Posner When does the First Amendment prevent the Government from compelling companies to make specified disclosures? Isn’t that what the securities laws are all about?  Are the securities laws just exempt from First Amendment challenges? After all, the USSCT has long recognized that “the exchange of information about […]

Rare good news from the DRC?

by Cydney Posner This month, the Enough Project issued a relatively favorable report on progress in the DRC and adjoining countries in curtailing the funding of armed groups through the trade in conflict minerals (tin, tantalum, tungsten and gold –3TG).  Happily, according to the Enough Project — one of the key proponents […]

Informal SEC staff advice excludes chemical compounds manufactured from 3TG from application of conflict minerals rule

by Cydney Posner This recent comment letter sent to the SEC attempts to memorialize informal telephone conversations between the author, acting on behalf of a number of industry associations, and SEC staff members regarding whether chemical compounds manufactured from 3TG are subject to the conflict minerals rules.  The letter also […]