The move forms part of a bid by the SEC to step up its attempts to understand and crack down on accounting disclosure made by US corporations.
An SEC statement, said it would focus on disclosures that seemed critical to understanding a company’s results, but would also look at those that seem to ‘conflict significantly with generally accepted accounting principles or commission rules, or to be materially deficient in explanation or clarity.’
SEC chairman, Harvey Pitt, recently stated bogus pro forma financial statements that make a loss look like a profit, without explaining this clearly, would almost certainly be viewed as fraudulent or confusing.
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season