News & Analysis as of

Accounting Securities and Exchange Commission (SEC)

Seward & Kissel LLP

[Event] Blockchain Symposium - April 30th, New York, NY

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The Symposium will cover topics including: - What are the tax and accounting structuring, compliance and enforcement considerations when tokenizing assets? - Onboarding private fund processes on-chain, where are we...more

Society of Corporate Compliance and Ethics...

The SEC's Reach Beyond Publicly Traded Companies

Think you don’t have to worry about the SEC because you’re at a private company or a non-profit? Think again says, Kevin Muhlendorf, attorney at Wiley Rein. You may still end up in the Commission’s crosshairs. He warns that...more

Vinson & Elkins LLP

Freight Accounting Fumble Leads to SEC Fine: UPS Penalized for Not Booking Known Impairment to Goodwill

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The Securities and Exchange Commission (SEC) recently announced that United Parcel Service Inc. (UPS) has agreed to pay a $45 million penalty for materially misrepresenting its earnings by improperly valuing its UPS Freight...more

Cooley LLP

SEC charges UPS with failure to take goodwill impairment charge require by GAAP

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Last week, the SEC announced settled charges against United Parcel Service Inc. for failing to take an appropriate goodwill impairment charge for a poorly performing business unit, thus materially misrepresenting its...more

A&O Shearman

Judge dismisses most of SEC’s suit against SolarWinds over cybersecurity disclosures

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On July 18, 2024, U.S. District Judge Paul Engelmayer of the U.S. District Court for the Southern District of New York issued a comprehensive 107-page opinion that may have significant implications for the Securities and...more

Woodruff Sawyer

Uncooked Books: Avoiding SEC Accounting Scrutiny

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When we think about the kinds of issues that the SEC is intended to regulate, big accounting frauds – Enron, WorldCom, Tyco – are top of mind. In this week’s D&O Notebook, my colleague and former SEC Enforcement Senior...more

Cooley LLP

SEC Chief Accountant issues statement on tone at the top

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In this statement, SEC Chief Accountant Paul Munter discusses the importance of setting the tone at the top. According to Munter, “academic research has ‘long stressed the crucial role that tone at the top, set by...more

Cornerstone Research

Spike in Fourth Quarter SEC Accounting and Auditing Enforcement Activity Results in Notable Increase in FY 2023

Cornerstone Research on

The U.S. Securities and Exchange Commission expanded its accounting and auditing enforcement activity in fiscal year 2023, while monetary settlements dropped for the second consecutive year, according to a new report released...more

Cooley LLP

What’s happening with critical audit matters?

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Ideagen AuditAnalytics has just released its 2024 Report on Critical Audit Matters, a 3-Year Review, covering the years 2020 to 2022. Under the auditing standard for the auditor’s report (AS 3101), adopted in 2017, CAMs are...more

White & Case LLP

Key Considerations for the 2024 Annual Reporting Season: Your Upcoming Form 20-F and other FPI-Specific Considerations

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This memorandum outlines key considerations from White & Case's Public Company Advisory Group for foreign private issuers ("FPIs") during the 2024 annual reporting season, divided into two sections: Form 20-F Housekeeping...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: January 1, 2024

The Nutter Securities Enforcement Update is a periodic summary of noteworthy recent securities enforcement activity, settlements, decisions, and charges....more

The Rodman Law Group, LLC

The Corporate Transparency Act Reporting Exemptions

The Corporate Transparency Act mandates certain reporting requirements for beneficial ownership information for certain companies, with the goal of preventing the illicit use of anonymous shell companies for financial crimes....more

Cooley LLP

SEC Chief Accountant has some thoughts about the statement of cash flows

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The SEC’s Office of Chief Accountant appears to be taking a hard look these days at statements of cash flows. In “The Statement of Cash Flows: Improving the Quality of Cash Flow Information Provided to Investors,” SEC Chief...more

Holland & Knight LLP

Called to Account: SEC's Latest Internal Accounting Controls Action Reignites Debate

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Several years ago, the U.S. Securities and Exchange Commission (SEC) issued an order against a public company that raised more than a few eyebrows. In that order, the company settled to violations of Section 13(b)(2)(B) of...more

NAVEX

SEC Office of the Whistleblower Annual Report to Congress – 3 Things You Need to Know

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On November 14, 2023 the Securities and Exchange Commission (SEC) released its annual Office of the Whistleblower Report to Congress for fiscal year 2023 (October 1, 2022-September 30, 2023). This report highlighted several...more

Cooley LLP

Some highlights of the 2023 PLI Securities Regulation Institute

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This year’s PLI Securities Regulation Institute was a source for a lot of useful information and interesting perspectives. Panelists discussed a variety of topics, including climate disclosure (although no one shared any...more

King & Spalding

The SEC's New Clawback Rules Will Change Internal Investigations

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Public companies are swiftly adopting policies regarding “erroneously awarded compensation” by December 1, 2023, to comply with listing standards required by the new SEC Rule 10D-1. These policies will require companies to...more

McDermott Will & Emery

[Webinar] 2023 Enforcement Outlook Series | SEC Enforcement: Recent Trends and What to Expect - October 26th, 12:00 pm - 1:00 pm...

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As we enter the final quarter of 2023, the US Securities and Exchange Commission (SEC) continues to maintain an aggressive enforcement agenda. Looking ahead to 2024, companies should expect more of the same. In this webinar,...more

Cooley LLP

SEC charges GTT with disclosure failures and control violations

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This press release announces settled charges brought by the SEC against GTT Communications, Inc., a multinational telecommunications and internet service provider, for failure to disclose material information about...more

White and Williams LLP

Virtual Currency Ventures: Navigating Tax and Accounting Waters for Success

Step into the fascinating world of virtual currencies, where digital marvels like Bitcoin and Dogecoin, have captured the attention of adventurers and investors alike. As you venture into this dynamic realm, it's important to...more

Cooley LLP

SEC charges improper revenue recognition practices—still a hot topic for SEC Enforcement

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Last month, Cornerstone Research told us that accounting and auditing enforcement activity by the SEC in FY 2022 increased by 55% over the prior fiscal year to 68 enforcement actions, 25 of which alleged improper revenue...more

Cooley LLP

Steep increase in accounting enforcement activity reported —especially against individuals

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In this report from Cornerstone Research, SEC Accounting and Auditing Enforcement Activity—Year in Review: FY 2022, Cornerstone tells us that accounting and auditing enforcement activity by the SEC increased sharply in FY...more

Cooley LLP

SEC charges DXC with misleading non-GAAP disclosures and absence of non-GAAP disclosure controls

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The SEC has announced settled charges against DXC Technology Company, a multi-national information technology company, for making misleading disclosures about its non-GAAP financial performance in multiple reporting periods...more

Cooley LLP

SEC Enforcement’s “EPS Initiative” chalks up another one

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Last week, the SEC announced settled charges against Gentex Corporation, a manufacturer of digital vision, connected car, dimmable glass and fire protection products, and its former Chief Accounting Officer and current CFO,...more

Woodruff Sawyer

Earnings Management Red Flags: Part One

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Public companies are under tremendous pressure to meet or beat stock analyst earnings estimates. This pressure caused Warren Buffet to observe: “Managers that always promise to ‘make the numbers’ will at some point be tempted...more

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