Compliance
Six Trends for CFOs in 2025: Walking the Tightrope Between Policy and Market
In 2025, CFOs will face an environment full of uncertainty: the Trump administration's tariff policies may push up inflation, the Fed's pace of rate cuts may slow, financial regulation may loosen, while pressure on AI investment returns and a shortage of accounting talent persist. Based on interviews with economists, lawyers, and executive headhunters, this article summarizes six major trends to provide decision-making references for financial leaders.
FASB Launches Agenda Update, Seeks Public Comment on New Standard Projects
The Financial Accounting Standards Board (FASB) issued an announcement on Friday inviting stakeholders to provide feedback on new projects it should undertake in the future, in order to update its agenda and determine which standards (the rules that form the basis of Generally Accepted Accounting Principles) require revision. The feedback deadline is June 30. Preliminary input has been received from approximately 200 stakeholders, with most indicating that no significant changes to GAAP are needed at this stage.
SEC Relaxes PCAOB's Authority to Deregister Accounting Firms
The U.S. Securities and Exchange Commission (SEC) approved new rules on January 2, granting the Public Company Accounting Oversight Board (PCAOB) greater authority to initiate deregistration procedures for accounting firms that have failed to submit annual reports and pay annual fees for two consecutive years. The new rules apply to reports and fees due this year, with deregistration potentially triggered as early as fall 2026. SEC Chairman Gary Gensler stated that the move aims to prevent inactive entities from continuing to promote themselves as PCAOB-registered. Currently, 80 firms are at risk due to failing to meet obligations in 2022 and 2023.
Former CFO of Indiana Health System to Receive $6.3 Million Whistleblower Settlement
Community Health Network (CHN) disclosed in its financial report that it will pay former Chief Financial Officer and Chief Operating Officer Thomas Fischer $6.3 million as an "employment-related settlement," which is part of a total $145.7 million settlement agreement involving False Claims Act allegations. Previously, in December 2023, CHN agreed to pay the U.S. government $345 million to resolve investigations triggered by Fischer's whistleblowing. The latest settlement covers remaining claims not pursued by the government, and the company denies any wrongdoing.
Trellis Report: Sustainable Careers Face a 'Crossroads' Under Compliance Pressure
The 'State of Sustainability Careers 2024' report by research institution Trellis (formerly GreenBiz) indicates that sustainability officers at large enterprises must balance innovation and compliance while addressing new regulations and reporting requirements. The survey shows that 74% of respondents reported increased team headcount, but budget growth slowed (54% in 2023 vs. 74% in 2022), and the proportion of CEOs with 'high engagement' dropped by 9 percentage points. The report describes the profession as being at a 'crossroads' and explores heightened regulation, the rise of the ESG controller role, and the phenomenon of 'greenhushing.'
Intel shareholders file derivative lawsuit seeking recovery of former CEO and CFO compensation
Intel shareholder LR Trust filed a derivative lawsuit on Tuesday in the U.S. District Court for the Northern District of California, seeking a court order requiring former CEO Pat Gelsinger, current CFO and co-interim CEO David Zinsner, and other company leaders to return "all profits, benefits, and other compensation" obtained through breaches of fiduciary and contractual duties. The lawsuit alleges that these executives engaged in misleading financial disclosures related to the foundry business, exposing the company to significant legal liability and reputational damage.
After a 6.4% increase in the latest period, audit fees are expected to climb further
The latest report from the Financial Education and Research Foundation shows that the average audit fee for listed companies in 2023 increased by 6.4% year-over-year, reaching $3.01 million. The report points out that internal control changes, M&A activity, and key personnel turnover are the main drivers of increased audit workload. Looking ahead, with the implementation of new FASB and PCAOB rules, audit fees are expected to climb further.
As the Trump 2.0 era approaches, uncertainty looms over SEC cybersecurity enforcement
Legal analysts note that in the first year of the U.S. Securities and Exchange Commission (SEC) implementing its "material" cybersecurity breach disclosure rule, most public filings have been vague and of limited value to investors. With Trump returning to the White House and Paul Atkins nominated to succeed as SEC chair, the rule faces the risk of being repealed or scaled back.
Four Major Compliance Pitfalls During the Holiday Season: Risks Employers Should Avoid
The holiday season is not always "the most wonderful time of the year" for human resources departments. Jonathan Segal, a partner at the law firm Duane Morris, noted in a recent online event that company holiday parties, gift-giving, bonus calculations, and decorations all harbor compliance risks. This article outlines four common pitfalls and strategies for employers to address them.
FASB's New Compensation Disclosure Rules Approach, Companies Should Prepare Early
The new FASB rules require public companies to disclose incentive compensation in greater detail, prompting companies to review their compensation management processes. The article highlights current management pain points and poses four key questions for executives to evaluate, recommending early preparation for a smooth transition.