In a recent move, the SEC adopted a controversial regulation that extends clawback provisions for U.S. public companies that face significant restatements. Under the old rule, companies could reclaim compensation paid to key executives based on incorrect financial statements, but only … Continue reading
Author Archives: Olga Usvyatsky
Auditors Copied on SEC Comment Letters
SEC Comment Letters are a rich vein of data on companies and their operations. For the average investor, however, that data is difficult to mine. The total volume of communication can be quite substantial, and the letters are often dense. Few stakeholders have the time … Continue reading
SEC Comment Letters: A Five Year Trend
As we discussed in one of our previous posts, the number of SEC comment letters referring to issues in 10-K and 10-Q filings decreased about 25% in the first half of 2014, compared to the same period in 2013. But what about previous … Continue reading
Genworth Financial: Fewer Adjustments, But Controls Still Ineffective
As we discussed in our previous blog, the remediation of control deficiencies can be a lengthy and costly process. The case of Genworth Financials (NYSE: GNW) is no exception. Its most recent quarterly report, filed on Wednesday, April 29, states that its … Continue reading
2013 COSO Framework Implementation: First Glance
In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released an updated Framework for companies to use in evaluating their Internal Controls over Financial Reporting (ICFR). The 1992 Framework entered a transitional period that ended on December 15, 2014, … Continue reading
GNC: Non-GAAP a Snapshot of Challenges
Interest in non-GAAP disclosure is on the rise among sophisticated investors and analysts. While everyone looks at non-GAAP in their own specific way, there are certain aspects of non-GAAP disclosures that most people could agree on. First and foremost, there is nothing inherently … Continue reading
Genworth Financial Cites Inadequate Controls
Reporting requirements may sometimes seem to be set in stone, but they do in fact change from time to time. Usually, when a regulator changes a requirement, it also imposes a deadline for the implementation of the change. The companies are … Continue reading