Compliance
FASB's New Environmental Credit Rules Spark Debate: A Mirror of Crypto Asset Accounting Disputes
On Wednesday, the FASB made several technical decisions on environmental credit accounting standards and voted 7-0 to approve a draft for public comment. Despite the unanimous vote, board members differed on certain details, particularly the allowance of fair value measurement in specific circumstances, raising valuation concerns similar to those in crypto asset accounting.
PCAOB Chair Erica Williams Reappointed, Term Extended to 2029
The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that Public Company Accounting Oversight Board (PCAOB) Chair Erica Williams has been granted a second term, from October 25, 2024, to October 24, 2029. SEC Chief Accountant Paul Munter expressed anticipation for continued collaboration to advance PCAOB's standard modernization and audit quality improvement.
Legal outlook uncertain, experts still advise businesses to comply with the Corporate Transparency Act
Although the Corporate Transparency Act faces constitutional challenges, experts point out that businesses other than the plaintiffs should still fulfill their reporting obligations. The Act mainly applies to companies with fewer than 20 employees and annual revenue not exceeding $5 million, but U.S. subsidiaries of larger companies may also be required to report.
Chemours Appoints New Chief Financial Officer, Succeeding Predecessor Who Departed Amid Accounting Investigation
Chemours announced on Wednesday the appointment of Shane Hostetter as its new Chief Financial Officer, succeeding Jonathan Lock, who left after an internal investigation uncovered improper financial conduct. Hostetter will assume the role on July 1, having previously served as CFO of Quaker Houghton.
Gensler criticizes crypto market, House passage of bill may create 'regulatory gaps'
SEC Chairman Gary Gensler, after the House passed a digital assets bill, slammed the cryptocurrency market for fraud and scams, warning that the bill would create new regulatory gaps and weaken investor protections. The bill passed 279-136, but whether the Senate will consider it remains uncertain.
Three ESG Lessons CFOs Can Learn from SOX Compliance
ESG reporting has become a new challenge for CFOs, but SOX compliance experience can provide valuable lessons. This article proposes three key lessons: view reporting as an opportunity beyond compliance, accept imperfect initial data, and stay ahead of exponential change with a digital-first mindset.
SEC fines NYSE parent Intercontinental Exchange $10 million for failing to promptly report cyberattack
The U.S. Securities and Exchange Commission (SEC) announced that Intercontinental Exchange (ICE) agreed to pay a $10 million fine to settle charges that it caused nine wholly-owned subsidiaries, including the New York Stock Exchange, to violate cybersecurity reporting rules. The issue stemmed from April 2021, when ICE personnel failed to report a cyber intrusion to the SEC within 24 hours, instead taking four days to assess before internally determining the impact was minor. SEC Enforcement Director Gurbir S. Grewal emphasized that for critical market intermediaries, "every second counts" in cybersecurity incidents, and "four days can be an eternity." ICE responded that the incident was an unsuccessful cyber access attempt three years ago with zero impact on market operations, and the dispute centered on the reporting timeline. Two SEC commissioners, Hester Peirce and Mark Uyeda, criticized the fine as an "overreaction."
ACCA survey: Nearly half of SMEs believe peers are more willing to whitewash accounts to cover up corruption
The latest global survey by the Association of Chartered Certified Accountants (ACCA) shows that 48% of SMEs believe that over the past decade, peers have been more willing to distort financial statements to conceal corrupt practices such as fraud; about three-fifths of businesses believe that peers face bribery risks, and resisting such practices may harm trade opportunities. The United States scored 69 on Transparency International's 2023 Corruption Perceptions Index for the second consecutive year, with progress stalling.
Powell: Inflation slowdown may be prolonged, Fed rate hike probability 'very small'
Federal Reserve Chair Jerome Powell said on Tuesday that due to unexpected upside inflation data this year, the Fed may need to keep interest rates at a 23-year high for a longer period, but the probability of another rate hike is 'very small.' He also noted that the policy rate is already restrictive, and the key going forward is to maintain the current rate for longer.
PCAOB Adopts Updated 'Foundational' Audit Rule, Requiring Faster Audit File Archiving
The PCAOB on Monday adopted an updated 'foundational' audit standard, shortening the deadline for final file archiving after audit completion from 45 days to 14 days. The new standard consolidates multiple rules, emphasizing professional skepticism, independence, competence, and judgment, and requires SEC approval, taking effect for fiscal years beginning on or after December 15, 2024. Large audit firms must comply after December 15, 2024, while smaller firms may defer for one year.