SEC Concerned over Companies Using Non-GAAP Earnings Measures
Public companies’ growing use of non-GAAP earnings measures has caught the attention of Securities and Exchange Commission (“SEC”) Chair Mary Jo White. At a November 17th conference in Washington, D.C., White said the SEC’s Division of Corporation Finance want to make sure that companies’ reliance on non-GAAP measures for presenting better-looking financial results does not mislead investors. In particular, SEC officials want to determine if companies are adequately disclosing why non-GAAP measures provide valuable information regarding their financial conditions and results of operations. White cited the lack of consensus on how companies define certain non-GAAP measured decreases comparability between companies. In. Read More.
SEC Chair Pushes for Increased Gender Diversity on Corporate Boards
Speaking at a global conference on women in Washington, D.C. this week, Securities and Exchange Commission (“SEC”) chair Mary Jo White criticized the lack of women in boardrooms. In her remarks, White expressed frustration at the slow progress of gender diversity among corporate boardrooms and top management. Despite companies using mandatory quotas and other efforts to increase the representation of women on boards, White does not believe such methods are the best answer to boosting diversity. Citing recent data numbers and research, White said increased board diversity creates stronger boards since women have a higher understanding of employee and customer. Read More.
SEC Nearing Decision on IFRS Adoption
As questions rise over the Securities and Exchange Commission’s (“SEC”) position on International Accounting Standards Board standards, the agency is close to addressing its use of International Financial Reporting Standards (IFRS) within the U.S. financial reporting system. With the SEC’s Mary Jo White repeatedly calling to make IFRS adoption a priority, the agency recently hired James Schnurr as its chief accountant. Scheduled to start his post October 6th, Schnurr could soon dedicate some policymaking action to IFRS. A retired partner from a Big Four firm, he previously said offering an IFRS option to U.S. companies provides various benefits. For instance,. Read More.
Second FAF Payment Sent to IFRS Foundation
As part of the convergence process between the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”), the Financial Accounting Foundation (“FAF”) has sent the second $1 million payments to the IFRS Foundation. The second installment occurred in June and a final payment is expected later this year. FAF trustees have not recently discussed the third payment and do not plan to anytime soon, and the subject was not mentioned during the public portion of the August 19th quarterly meeting. Due to previous complaints, the lack of discussion is surprising to some. Before being announced, Securities and Exchange. Read More.
Topics: Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", IFRS Foundation, International Accounting Standards Board "IASB", Mary Jo White, National Association of State Boards of Accountancy "NASBA", U.S. Securities and Exchange Commission "SEC"
Corp Fin’s Higgins Discusses Disclosure Rules Project
Looking to improve company filings and other information important to investors, the U.S. Securities and Exchange Commission’s (“SEC”) Division of Corporation Finance’s Keith Higgins announced that the agency will continue work on its long-term project to simplify disclosure rules by tackling smaller changes first. At a U.S. Chamber of Commerce-hosted (“the Chamber”) event on July 29th, the director of the SEC’s Division of Corporation Finance (“Corp Fin”) remarked that his staff is currently brainstorming smaller changes that are clear and can be completed faster than more complicated items. Made a top priority by SEC Chair Mary Jo White, the disclosure. Read More.
Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment. Since becoming SEC Chair last year, White. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"