In a recently released tool for the Audit Committees, the Center for the Audit Quality stated that it is “urgent that audit committees understand how management is assessing the impact of the new revenue recognition standard”. ASC 606 (which is … Continue reading
Author Archives: Derryck Coleman
Cyber Risk Disclosure On The Rise
Cybersecurity continues to be a top priority for management. PwC’s 2016 Global Economic Crime Survey found that “61% of CEOs [in the survey] are concerned about cyber security.” However, “only 37% of respondents […] have a fully operational incident response … Continue reading
A Big Change in Bank of America’s Accounting Policy
Voluntary changes in accounting principle are usually disclosed in so-called preferability letters, but occasionally a significant change will be disclosed in an 8-K current report. Last Friday, Bank of America did just that, disclosing that they would be changing their method of … Continue reading
Disclosure Requirements of Non-GAAP Error Corrections
In a series of posts, we have discussed mounting evidence that, with 90% of U.S. public companies using custom metrics, non-GAAP presentations are becoming a de-facto alternative accounting system. In a May speech, Mark Kronforst, chief accountant of the SEC’s Division … Continue reading
Conflict Minerals Update: Year 3 Brings Better Reporting
Note: This blog has been modified from its original version to clarify the distinction between reports that reached a “conflict-free” determination based on RCOI alone versus those that were based on an IPSA. This past spring marked the third year that Form SD Conflict Minerals disclosures … Continue reading
Disclosing the Impact of “Brexit”
Following the historic UK referendum on June 23, some analysts indicated that, up to that point, only a handful of companies had provided risk factors related to the potential consequences of a “Brexit”. Since then, the volume of such disclosures … Continue reading
Use of Non-GAAP in Proxy Statements
Non-GAAP is the issue du jour, and the past month stuck with the theme. One of the most significant bits of news came directly from the SEC. On May 17, the watchdog released an additional interpretation of Regulation G, which comprises the rules that govern the use … Continue reading