Standing Advisory Group’s Task Force Shelved
At a Standing Advisory Group (“SAG”) meeting last month, Public Company Accounting Oversight Board (“PCAOB”) Chairman James Doty announced that the Board will no longer pursue creating a task force for identifying accounting fraud. Responding to a question concerning such efforts, Doty remarked that the PCAOB will tackle fraud through a series of outreach efforts. In this approach, Doty believes the issues can be addressed through private discussions in group settings. Originating in November 2012, the task force idea gained traction after SAG members believed it would help improve auditing practices and provide recommendations to the PCAOB. The PCAOB’s staff. Read More.
Topics: Audit, Center for Economic Analysis, financial reporting, fraud, James Doty, Marty Baumann, Office of Research and Analysis, Public Company Accounting Oversight Board "PCAOB", Standing Advisory Group "SAG", Task Force
Rep. Maloney Introduces Controversial Disclosure Bill to House
Resembling a 2010 bill enacted by California, H.R. 4842, the Business Supply Chain Transparency on Trafficking and Slavery Act of 2014, was recently introduced in the House of Representatives. The proposed bill requires U.S. public companies with $100 million in yearly sales to submit annual reports to the U.S. Securities and Exchange Commission (“SEC”) detailing their efforts to recognize suppliers that use slaves, forced labor or children for producing goods. Rep. Carolyn Maloney, the bill’s sponsor, remarked that the requirement would inform consumers on what measures companies are taking to stop illegal labor practices, and reaffirms such businesses to communicate what. Read More.
Topics: Business Supply Chain, Carolyn Maloney, Center for Capital Market Competitiveness, Disclosures, First Amendment, House of Representatives, Thomas Quaadman, Trafficking and Slavery Act of 2014, U.S. Chamber of Commerce, U.S. Securities and Exchange Commission "SEC"
Proposed Rule Prohibits Award of Defense Contracts for Companies Who Violate the Fair Labor Standards Act
If your business violated the Fair Labor Standards Act (“FLSA”) within the past five years, your company may be barred from receiving new defense contracts for a period of one year. The Department of Defense Appropriations Act (H.R. 4870) for fiscal year 2015 is expected to provide funding of $491 billion for FY 2015, which is a modest one percent increase from the prior year enacted budget. Section 10030 of the act is difficult to interpret, but essentially states that any person who has violated the FLSA within five years may not receive a contract using funds available by the. Read More.
Governments Warming to Bitcoin
As the world’s leading virtual currency, the use of Bitcoin is slowly becoming more mainstream within federal and state governments. Both entities are accepting its usage through regulations associated with other legitimate world currencies and specific state laws legalizing virtual currencies. While Bitcoin gains acceptability with larger governments and is used more by private businesses, there will likely be increased pressure on local governments to accept other virtual currency for local transactions. Although widespread Bitcoin use could be years away, a complete understanding of virtual currency’s benefits and risks may help in proper planning and implementing usage guidelines. Such efforts. Read More.
GASB Announces Fair Value Measurement and Application Webinars
Open for registration, the Governmental Accounting Standards Board (“GASB”) has announced the dates and times for two, one-hour educational webinars covering its exposure draft, Fair Value Measurement and Application . The first webinar, Fair Value Measurement and Application: A CPE Webinar for State and Local Government Financial Statement Preparers and Auditors, will occur on July 15th. On July 17th, the GASB will host its second webinar, Fair Value Measurement and Application: A Webinar for State and Local Government Financial Statement Users. Both webinars have a scheduled start time of 1:00 p.m. EST. Targeting areas related to their audiences, the webinars will cover topics like the proposed definition of fair. Read More.
Multiemployer Pension Plans Continue to Experience Shortfall
In an annual report by the Pension Benefit Guaranty Corporation (“PBGC”), the agency addressed the current state of multiemployer pension plans. According to the FY 2013 Projections Report, despite the stock market’s recent gains and an improving economy, multiemployer plans are rapidly deteriorating and labor union-sponsored plans have become underfunded. Facing a severe shortfall, the PBGC projects over a million of the 10.4 million workers in multiemployer plans could lose their benefits. Responsible for covering benefits in failed pension plans, the PBGC guarantees the single-employer and multiemployer insurance programs. While the finances for 23,000 single-employer plans are expected to improve. Read More.