The US regulator has warned that it will pursue companies who do not provide
adequate disclosure and transparency in their financial reports, the office of
the chief accountant of the Securities and Exchange Commission said yesterday.
In testifying about the Financial Accounting Standards Board’s proposals on
off-balance sheet accounting, senior SEC officials said the regulator will ask
companies, where necessary, to improve disclosure through the review and comment
The rule could force companies to book billions in troubled assets and raise
more capital to offset their risks.
FASB said in its proposal that qualifying special purpose entities, or QSPEs
– an accounting concept banks have used to keep those assets off their balance
sheets – are ‘no longer relevant for accounting purposes.’
‘Where we are unable to achieve improved disclosure through the review and
comment process, we stand ready to take any necessary action, including
referring companies with material disclosure deficiencies to the Division of
Enforcement,’ the SEC said.
‘Investors, analysts, auditors, and preparers of financial disclosure play a
fundamental role in improving the transparency of financial reporting,’ the SEC
Improvements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC)
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
Long-serving PwC director Fiona Westwood has moved to Smith & Williamson and stepped up to partner