Category Archive: Financial regulation

Mar 03

A second shot at an end to pre-dispute mandatory arbitration clauses with brokers

Legislation that would free investors from the requirement to engage in pre-dispute mandatory arbitration with their brokers is getting a second life.  Congressman Keith Ellison, D-Minn, has once again introduced the bill to Congress, with the following findings: “(1) Investor confidence in fair and equitable recourse is essential to the health and stability of the securities …

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Permanent link to this article: http://betweenthenumbers.net/2015/03/a-second-shot-at-an-end-to-pre-dispute-mandatory-arbitration-clauses-with-brokers/

Jan 26

There’s Nothing Extraordinary About Your GAAP Based Financial Statements

The Financial Accounting Standards Board (“FASB”) has issued its first accounting standards update of 2015.  Simply put, FASB wishes to inform preparers of financial statements that there is nothing special about the results they are reporting, i.e., the end of the concept of “Extraordinary Items” on Income Statements. Accounting Standards Update No. 2015-01, Income Statement—Extraordinary and Unusual …

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Permanent link to this article: http://betweenthenumbers.net/2015/01/theres-nothing-extraordinary-about-your-gaap-based-financial-statements/

Nov 22

The Multi-Faceted Explanation Behind the Current Drop in Gasoline Prices Across the US

With the national average for ’87 octane descending below $3 a gallon, American drivers are paying less at the pump than they have since the beginning of the Great Recession (in terms of seasonality price, the current average is the lowest since 2009, in terms of absolute pricing, an average gallon of gas hasn’t been …

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Permanent link to this article: http://betweenthenumbers.net/2014/11/the-multi-faceted-explanation-behind-the-current-drop-in-gasoline-prices-across-the-us/

Jul 14

Audit Re-do Required Because of Inappropriate Relationship

Ernst & Young (E&Y) audits of Ventas, a real estate investment trust (REIT) in the healthcare sector, will have to be redone for the years ended December 31, 2012 and 2013, along with a review for the quarter ended March 31, 2014.  This unfortunate and costly required effort results from E&Y’s determination that the work …

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Permanent link to this article: http://betweenthenumbers.net/2014/07/audit-re-do-required-because-of-inappropriate-relationship/

Jun 10

New standard for revenue recognition

The newly converged standard for revenue recognition has arrived. Both ASU 2014-09 (issued by FASB) and IFRS 15 (issued by IASB) are entitled “Revenue from Contracts with Customers”.  They represents a principles-based framework that is effective for revenue-generating public entities with reporting periods after December 15, 2016.  Private entities will have an additional year to …

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Permanent link to this article: http://betweenthenumbers.net/2014/06/new-standard-for-revenue-recognition/

Apr 14

SEC Director Speaks to Root Causes of Investor Harm

Andrew Barton, Director of the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) recently gave a speech entitled “People Handling Other People’s Money”, where he drew on his experience to make assessments of the sources of investor harm.  He described how, despite people “trying to do the right thing by their clients, colleagues, owners and…even …

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Permanent link to this article: http://betweenthenumbers.net/2014/04/sec-director-speaks-to-root-causes-of-investor-harm/

Apr 07

EU Requires 10-Year Auditor Rotation Amid Other Efforts to Improve Audit Quality

The European Parliament has adopted new rules regarding the statutory audit of public-interest entities in an effort to “considerably improve audit quality across the European Union and … ensure that auditors are key contributors to economic and financial stability….by strengthening of the independence of statutory auditors, making the audit report more informative, and improving audit supervision …

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Permanent link to this article: http://betweenthenumbers.net/2014/04/eu-requires-10-year-auditor-rotation-and-other-efforts-to-improve-audit-quality/

Mar 17

SOX Whistleblower Protection Extend to Certain Private Company Employees

The Supreme Court has held in the case of Lawson v. FMR LLC that the whistleblower protection available under the Sarbanes-Oxley Act of 2002 (“SOX”) properly extends to employees of privately held contractors and subcontractors who perform work for a public company.  Although the case in question was brought by employees of advisors to a …

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Permanent link to this article: http://betweenthenumbers.net/2014/03/sox-whistleblower-protection-extend-to-certain-private-company-employees/

Mar 14

FASB wants to hear from stakeholders on fair value measurements

The Financial Accounting Standards Board (“FASB”) is requesting input from stakeholders regarding FASB Statement No. 157, Fair Value Measurements, (“157”).  157 provides a single definition of fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. A Financial Accounting Foundation (FAF)  review team found that some investors were struggling to understand the use of …

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Permanent link to this article: http://betweenthenumbers.net/2014/03/fasb-wants-to-hear-from-stakeholders-on-fair-value-measurements/

Mar 10

PCAOB Quote Regarding Audit Failure Rate Raises Concerns

Recently, the Wall Street Journal reported the shocking headline “One in Three Audits Fail, PCAOB Chief Auditors Says”.  The PCAOB is the Public Company Accounting Oversight Board, so such a statement certainly has the ability to rattle not only the the audit community, but all users of audited financials. Reading the context of the quote …

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Permanent link to this article: http://betweenthenumbers.net/2014/03/pcaob-quote-regarding-audit-failure-rate-raises-concerns/

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