FEI Financial Reporting Blog

• SEC's Khuzami 'Skeptical' of Auditors' Claims on Privilege

  Number of comments: 2
  In remarks at an AICPA conference earlier this week, SEC Enforcement Director Robert Khuzami said:
  
  We have seen a number of audit firms withhold subpoenaed documents and assert work product privilege on behalf of an audit client. We are skeptical of such claims, especially after the recent [...]
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  Posted: December 10, 2009, 12:25am EST
  by Edith Orenstein

• FASB Chairman Calls For 'Decoupling' GAAP and RAP

  Number of comments: 0
  In remarks at the AICPA's national conference on current SEC and PCAOB developments, FASB Chairman Robert H. Herz called for:
  

  a greater decoupling of bank regulation from U.S. GAAP reporting requirements. Doing so could enhance the ability of both the FASB and the regulators to fulfill our critical mandates. [...]

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  Posted: December 09, 2009, 10:06pm EST
  by Edith Orenstein

• IFRS Roadmap Action Expected In Early 2010, Says SEC's Walter

  Number of comments: 0
  In remarks at an AICPA conference earlier today, SEC Commissioner Elisse Walter noted:
  Chairman Schapiro has said that we would soon turn to the proposed IFRS Roadmap, and we are doing just that. At this stage in our review process, I expect we will likely consider further action sometime [...]
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  Posted: December 09, 2009, 1:44pm EST
  by Edith Orenstein

• Kroeker Stresses Importance of Investors in IFRS Decision; Search Is On For Next Chairman Of IASB When Tweedie Retires in 2011

  Number of comments: 1
  In remarks earlier today at the AICPA's annual conference on current SEC and PCAOB developments, SEC Chief Accountant Jim Kroeker said, "implementing a single set of global accounting standards for U.S. issuers can, and must, be done only in a manner that is beneficial to U.S. capital markets and" [...]
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  Posted: December 07, 2009, 5:13pm EST
  by Edith Orenstein

• FASB-IASB Financial Crisis Advisory Group To Meet Dec. 15

  Number of comments: 0
  The Financial Crisis Advisory Group (FCAG) - a joint advisory group formed by FASB and the IASB in 2008 to advise the two boards on accounting issues relating to the credit crisis (culminating in issuance of the FCAG final report in July, 2009) - will meet in London on [...]
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  Posted: December 05, 2009, 8:02pm EST
  by Edith Orenstein

• FASB Advisory Cmte. Calls For FAF To Consider Separate Private Co. GAAP

  Number of comments: 1
  At a joint meeting of the Financial Accounting Standards Board's Private Company Financial Reporting Committee (PCFRC) and Small Business Advisory Committee (SBAC) held on Dec. 3, 2009, PCFRC Chair Judy O'Dell told the group: "We’ve come to the conclusion it's time to look at a separate set of private company'" [...]
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  Posted: December 04, 2009, 1:20pm EST
  by Edith Orenstein

• Chief Accountant May Speak On IFRS Roadmap Next Week

  Number of comments: 0
  In remarks before a FASB advisory group earlier today, an SEC staff member said that SEC's Chief Accountant is expected to speak about the status of SEC’s consideration of its IFRS roadmap when he speaks at an industry conference next week.
  
  NOTE TO READERS: Since next week still falls' [...]
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  Posted: December 03, 2009, 1:20pm EST
  by Edith Orenstein

• PCAOB, Awaiting Supreme Court, Approves Budget

  Number of comments: 0
  As the Public Company Accounting Oversight Board awaits Dec. 7 oral argument before the Supreme Court on a case challenging the constitutionality of the PCAOB - Free Enterprise Fund and Beckstead and Watts v. PCAOB and United States of America - the PCAOB board approved a $183 million budget yesterday, [...]
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  Posted: December 01, 2009, 12:09pm EST
  by Edith Orenstein

• Why Accounting Matters

  Number of comments: 1
  Last week, we reported that two amendments relating to the Financial Accounting Standards Board were approved by the House Financial Services Committee (HFSC) during markup of its systemic risk bill. The bill, more formally called the Financial Stability Improvement Act (FSIA), is part of a broader set of [...]
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  Posted: November 27, 2009, 3:59pm EST
  by Edith Orenstein

• FASB-Related Amendments (Perlmutter/Lucas; Garrett) Pass House Committee

  Number of comments: 1
  As reported by Dow Jones Newswire's Sarah Lynch earlier today, U.S. House Panel Approves A Toned-Down Accounting Proposal. The article refers to the Perlmutter/Lucas amendment relating generally to the role that the proposed systemic risk council would play vis-a-vis accounting standard-setting. Separately, an amendment offered by Rep. Scott Garrett,' [...]
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  Posted: November 19, 2009, 10:48pm EST
  by Edith Orenstein

• SEC Commissioner Casey's Keynote Address At FEI CFRI, Additional Conf. Highlights Posted

  Number of comments: 0
  The closing keynote address provided by SEC Commissioner Kathleen Casey at FEI's Current Financial Reporting Issues Conference on Nov. 17 has been posted by the SEC here and is also currently posted as headline 1 on FEI's website, www.financialexecutives.org. (Direct link to speech here.) Additional highlights from [...]
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  Posted: November 19, 2009, 2:06pm EST
  by Edith Orenstein

• Wayne's World: Carnall Tells FEI Conf. What's In Store From Corp Fin

  Number of comments: 0
  If you remember the old 'SEC Regs' Committee of the AICPA (now called the 'CAQ Regs' Committee, under the aegis of AICPA-affiliate, the Center for Audit Quality) you may have heard of it referred to as one of the so-called 'secret societies' in accounting. Based on remarks of [...]
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  Posted: November 17, 2009, 9:50pm EST
  by Edith Orenstein

• Both Cost And Fair Value May Be Presented Or Disclosed, As FASB, IASB Proceed On Convergence; LIFO on IRS' List of Convergence Issues

  Number of comments: 0
  At day one of FEI's Current Financial Reporting Issues Conference, FASB Technical Director Russell Golden noted that as FASB and the IASB work toward reconciling differences in their financial instruments projects with the hope of arriving at a converged solution, fair value and amortized cost may both end up being' [...]
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  Posted: November 16, 2009, 5:00pm EST
  by Edith Orenstein

• May Be A 'Silver Lining' to Non-Endorsement of IFRS 9 By European Commission, IASB Board Member Says

  Number of comments: 0
  In remarks at FEI's 28th annual Current Financial Reporting Issues (CFRI) conference earlier today, International Accounting Standards Board member Patrick Finnegan noted that the IASB's issuance of IFRS 9 (Financial Instruments) last week was met by non-endorsement by the European Commission.
  
  According to a separate report by [...]
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  Posted: November 16, 2009, 3:44pm EST
  by Edith Orenstein

• IASB Releases IFRS 9-Financial Instruments (Completes 1st Phase of Project: Classification & Measurement)

  Number of comments: 3
  Earlier today, the IASB released IFRS 9, Financial Instruments. As noted in IASB's press release, IASB is engaged in a three-phase project to replace its existing standard, IAS 39, Financial Instruments, Recognition and Measurement, with a new standard, IFRS 9, Financial Instruments. The three phases and related due process' [...]
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  Posted: November 12, 2009, 12:31pm EST
  by Edith Orenstein

• Update On Congressional Consideration Re: FASB

  Number of comments: 2
  Updating our post last week, FEI Committee on Corporate Reporting (CCR), SEC Chairman, Others Write Congress on Standard-Setting, earlier today, FEI's Committee on Private Companies - Standards Committee (CPC-S) submitted its own letter to Congress (see FEI CPC-S letter) on potential amendments reportedly under consideration by some members' [...]
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  Posted: November 11, 2009, 5:00pm EST
  by Edith Orenstein

• FEI Committee on Corporate Reporting (CCR), SEC Chairman, Others Write Congress On Standard-Setting

  Number of comments: 1
  On Nov. 5, 2009 FEI's Committee on Corporate Reporting (CCR) submitted a letter to Rep. Barney Frank and Rep. Spencer Bachus, Chair and Ranking Member, respectively of the House Financial Services Committee. The FEI CCR letter noted: "concer[n] with recent proposals that would place accounting standards oversight under the'" [...]
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  Posted: November 06, 2009, 1:00pm EST
  by Edith Orenstein

• FASB, IASB Reaffirm Convergence By June, 2011

  Number of comments: 0
  Earlier today, FASB and the IASB announced the release of a 23-page joint statement which reaffirms their commitment to improve IFRS and U.S. GAAP, and to bring about their convergence through completion of the major convergence projects outlined in the FASB-IASB Memorandum of Understanding by June, 2011. The [...]
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  Posted: November 05, 2009, 9:27pm EST
  by Edith Orenstein

• Sarbanes-Oxley Exemption Passes Congressional Committee

  Number of comments: 4
  Earlier today, the House Financial Services Committee approved an amendment that would exempt small public companies from the provisions of Sarbanes-Oxley Section 404b. The Garrett/Adler amendment, offered by Rep. Scott Garrett (R-NJ) and Rep. John Adler (D-NJ), was approved in the HFS Committee today by a [...]
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  Posted: November 04, 2009, 5:30pm EST
  by Edith Orenstein

• COSO Releases Thought Paper on ERM

  Number of comments: 0
  Earlier today, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released a 24-page thought paper entitled Strengthening Enterprise Risk Management for Strategic Advantage. The new thought paper follows the release in October of a four-page thought paper entitled, Effective Enterprise Risk Oversight: The Role of The [...]
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  Posted: November 04, 2009, 1:33pm EST
  by Edith Orenstein

• FASB Oversight Subject of Congressional Interest

  Number of comments: 0
  As we previously reported, Rep. Ed Perlmutter (D-CO) introduced a bill earlier this year (HR 1349), which would create a Federal Accounting Oversight Board (FAOB). More recently, Rep. Gary Miller (R-CA) proposed an amendment to create a Financial Reporting Forum (FRF). The two legislative initiatives vary in [...]
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  Posted: November 03, 2009, 9:39pm EST
  by Edith Orenstein

• Kroeker, Volcker on Convergence

  Number of comments: 0
  Earlier today, SEC Chief Accountant Jim Kroeker told a conference in New York that regardless of the status of SEC's proposed IFRS Roadmap:
  
  "If the boards [FASB, IASB] share the same objective to improve financial reporting, the boards have agreed that the projects that they’re working on are areas'" [...]
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  Posted: October 30, 2009, 4:30pm EDT
  by Edith Orenstein

• FASB, IASB To ‘Retriple’ Efforts To Meet 2011 Convergence Deadline

  Number of comments: 3
  This week may stack up as a big one on the global accounting convergence front, with FASB Chairman Robert Herz calling yesterday for 'retripling' the two boards' efforts toward meeting their 2011 convergence target established in the FASB-IASB MOU. Herz’ remarks were reported by BNA's Steve Burkholder in [...]
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  Posted: October 29, 2009, 4:34pm EDT
  by Edith Orenstein

• IFRS: Results & Invitations

  Number of comments: 2
  As the SEC prepares to "speak a little later this fall about what our expectations are with respect to IFRS" (SEC Chairman Mary L. Schapiro, Sept. 18, 2009 as reported by Sarah Lynch, DJ Newswire, in Schapiro Says SEC Will Discuss Transition to IFRS This Fall), and as FASB [...]
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  Posted: October 22, 2009, 9:30am EDT
  by Edith Orenstein

• SEC Seeks Comment on e-Proxy, Strat Plan

  Number of comments: 1
  The U.S. Securities and Exchange Commission recently released two items for public comment.
  
  

  SEC Proposes Amendments To e-Proxy
  On Oct. 14, 2009 the SEC released Proposed Amendments to Rules Requiring Internet Availability of Proxy Materials (aka 'e-proxy').

  The proposal cites findings from a survey conducted by Broadridge Financial [...]

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  Posted: October 21, 2009, 11:18am EDT
  by Edith Orenstein

• Fair Value, Audit Committes, Related Parties Highlights Of Day 2, PCAOB SAG Meeting

  Number of comments: 2
  We have posted our detailed highlights of Day 2 of the PCAOB's Oct. 14-15, 2009 Standing Advisory Group meeting. (This is in addition to highlights of Day 1 posted last week.) Discussion during Day 2 of the SAG meeting focused on:
  fair value measurements and using the' [...]
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  Posted: October 20, 2009, 1:32pm EDT
  by Edith Orenstein

• PCAOB Announces Ambitious Agenda; May Be Time to 'Dial Up' on Fraud, Silvers Says

  Number of comments: 1
  Earlier today, PCAOB Acting Chairman Dan Goelzer told the PCAOB's Standing Advisory Group: "We are embarking on a new phase in standard-setting, [with] a very ambitious standard-setting agenda in the coming year, focusing on some nuts and bolts issues, particularly issues our inspection program has highlighted where standards could'" [...]
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  Posted: October 14, 2009, 10:50pm EDT
  by Edith Orenstein

• COSO Updated Fraud Study Coming; Garrett Proposes Sarbox Exemption

  Number of comments: 0
  At the PCAOB Standing Advisory Group meeting earlier today, SAG member Joe Carcello noted, "As some of you in the room know, we are working with COSO to update our study on fraud [originally published] in 1999." [NOTE: COSO's upcoming updated fraud study, like the earlier COSO fraud' [...]
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  Posted: October 14, 2009, 10:45pm EDT
  by Edith Orenstein

• More On: Sarbox 404b For Small Cos, AS5

  Number of comments: 1
  We reported recently on the PCAOB's issuance of its '4010' report on inspection results on the implementation of AS5, its revised standard on internal control audits (replacing AS2), and on the SEC's announcement last week of a final delay of the implementation date for small co's (i..e. 'nonaccelerated [...]
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  Posted: October 07, 2009, 8:42am EDT
  by Edith Orenstein

• SEC To Release Draft Strat Plan For Public Comment

  Number of comments: 1
  SEC staff told the SEC's Investor Advisory Committee (IAC) earlier today that the SEC will publish its draft Strategic Plan (SP) for public comment - likely for a 3o day comment period - as soon as the draft is approved for release by the Commission.
  
  
  Four Goals[...]
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  Posted: October 05, 2009, 1:28pm EDT
  by Edith Orenstein

• Finalization of Proxy Access Rules Will Be 'As Soon As Practicable,' Gillan Tells Investor Advisory Committee

  Number of comments: 0
  In remarks at the SEC Investor Advisory Committee meeting taking place earlier today, SEC Deputy Chief of Staff Kayla Gillan commented on the status of SEC's initiatives on proxy access (aka shareholder nomination of directors).
  
  Her remarks and those of Commissioner Elisse Walter and Commissioner Luis Aguilar appeared' [...]
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  Posted: October 05, 2009, 1:25pm EDT
  by Edith Orenstein

• SEC Extends Sarbanes-Oxley 404b Deadline for Small Cos

  Number of comments: 3
  Earlier today, the U.S. Securities and Exchange Commission issued a press release announcing that its Study on SOX Internal Controls (referred to informally as SEC's cost-benefit study) has been published.
  
  The press release also notes that the SEC has decided to extend once again the deadline for' [...]
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  Posted: October 02, 2009, 3:22pm EDT
  by Edith Orenstein

• Fireside Chats, Enforcement This-N-Thats

  Number of comments: 1
  The SEC Historical Society has scheduled a two-part program on accounting in its Fireside Chats series, which you can log into from in front of your fireplace - or wherever you happen to be - on Oct. 22 and Oct. 28 from 1-2 pm EDT. (Archived webcasts will be [...]
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  Posted: September 30, 2009, 10:14am EDT
  by Edith Orenstein

• G-20 Progress Report - More Detailed than Leaders' Statement - Calls For Convergence by June, 2011

  Number of comments: 5
  Updating our earlier post from this weekend on the Sept. 25 G-20 Leaders' Statement (which called somewhat generically for convergence by June, 2011), we believe our original interpretation posted on Sept. 26 (i.e. that the G-20 is calling for completion of major convergence projects - such as the' [...]
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  Posted: September 29, 2009, 11:41am EDT
  by Edith Orenstein

• G-20 Calls For Convergence By June, 2011

  Number of comments: 6
  (Sept. 29, 2009 - UPDATE 2: Based on more detailed information in G-20 Progress Report dated Sept. 25, it appears to me, personally, that the G-20 call for convergence by June, 2011 relates to convergence, generally (e.g., FASB-IASB MOU). Read our Sept. 29 post for more info.)
  
  (Sept. [...]
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  Posted: September 26, 2009, 12:38am EDT
  by Edith Orenstein

• Lynn Turner Speaks Out on Financial Regulatory Reform

  Number of comments: 0
  Former SEC Chief Accountant Lynn Turner, now a senior advisor and managing director at LECG, was interviewed on Bloomberg TV yesterday (Sept. 25), on the subject of financial regulatory reform, see the interview here. In the interview, Turner describes some of the administration's proposals for regulatory reform as 'regulation-lite,'' [...]
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  Posted: September 26, 2009, 12:35am EDT
  by Edith Orenstein

• Monitoring Board Issues Statement Of Principles

  Number of comments: 0
  On Sept. 22, 2009 , the Monitoring Board formed to "enhance the [International Accounting Standards Committee Foundation's] public accountability by establishing a link to a Monitoring Board of public authorities... [to] ensure that the Trustees continue to discharge their duties as defined by the IASC Foundation Constitution, as well'" [...]
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  Posted: September 26, 2009, 12:30am EDT
  by Edith Orenstein

• PCAOB Issues Report On First Year Implementation of AS5

  Number of comments: 1
  Earlier today, the Public Company Accounting Oversight Board issued a report on the first year of implemenation of Auditing Standard No. 5 (AS5), An Audit of Internal Control Over Financial Reporting That is Integrated With An Audit of Financial Statements. (PCAOB press release; PCAOB report.) As noted in [...]
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  Posted: September 24, 2009, 6:12pm EDT
  by Edith Orenstein

• SEC, PCAOB Investor Advisory Committee Developments

  Number of comments: 3
  Following is an update on some recent developments with the SEC's Investor Advisory Committee (IAC), and a similar committee formed at the PCAOB.
  
  Earlier this week, the SEC announced SEC Investor Advisory Committee Forms Three Subcommittees to Tackle Ambitious Agenda on Behalf of Investors. The three subcommites are:[...]
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  Posted: September 18, 2009, 5:30pm EDT
  by Edith Orenstein

• FASB-IASB Hold 3rd Roundtable On Financial Instruments

  Number of comments: 0
  The third in a series of FASB-IASB roundtables on the financial instruments project was held earlier today in Norwalk, CT. (The first two roundtables were held in Tokyo and London.)
  
  The roundtable handout (we understand the handout for today's roundtable is essentially identical to the 14 page' [...]
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  Posted: September 14, 2009, 4:48pm EDT
  by Edith Orenstein

• Obama To Wall Street: Return To Normalcy Cannot Lead To Complacency

  Number of comments: 2
  Earlier today, on the one-year anniversary of Lehman Brothers’ downfall - an event viewed as the penultimate trigger point in the credit crisis, leading to a broader economic crisis which the government sought to stem through the Emergency Economic Stabilization Act of 2008, and the American Recovery and Reinvestment Act [...]
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  Posted: September 14, 2009, 3:26pm EDT
  by Edith Orenstein

• Sarbanes-Oxley, Fair Value, And What Counts

  Number of comments: 7
  We received the following information from Jonathan Jachym and Leigh Stapleton of the U.S. Chamber of Commerce. The message is directed at small public companies (i.e. non-accelerated filers, generally defined as those with less than $75 million market cap).
  
  The U.S. Chamber’s Center for Capital Market’s Competitiveness is conducting [...]
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  Posted: September 11, 2009, 4:18pm EDT
  by Edith Orenstein

• Kotz, Khuzami, Walsh Testimony Posted for Senate Banking Hearing re: Madoff

  Number of comments: 0
  Moments ago, Senate Banking Committee Chairman Chris Dodd opened the committee's hearing on: Oversight of the SEC’s Failure to Identify the Bernard L. Madoff Ponzi Scheme and How to Improve SEC Performance. Testimony has been posted on the SEC website for SEC Inspector General H. David Kotz, and' [...]
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  Posted: September 10, 2009, 2:54pm EDT
  by Edith Orenstein

• G-20 Finance Ministers Issue Progress Report, Next Steps In Advance of Pittsburgh Summit

  Number of comments: 1
  As a lead-in to the G-20 meeting set to take place in Pittsburgh on Sept. 24-25, at which President Barack Obama will host the leaders of nations representing 85% of the world's economy, the G-20 Finance Ministers and Central Bank Governors held a meeting in London on Sept. 4-5. [...]
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  Posted: September 08, 2009, 4:25pm EDT
  by Edith Orenstein

• Promoting Transparency In Financial Reporting Act Up For Vote In Congress

  Number of comments: 2
  [UPDATE 9.9.09: The PTFRA bill passed the House today, see press release issued by Rep. Chris Lee (R-NY), sponsor of the bill [bit.ly]]
  
  Congress is set to reprise this week its earlier passage of the Promoting Transparency in Financial Reporting Act. (The House passed the bill in prior [...]
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  Posted: September 08, 2009, 10:07am EDT
  by Edith Orenstein

• SEC Releases Full OIG Report On Madoff; Congressional Hearings Coming

  Number of comments: 2
  This evening, the SEC posted the 477-page report of its Office of Inspector General, Investigation of Failure of the SEC to Uncover Bernard Madoff’s Ponzi Scheme - Public Version (SEC Office of Investigations Report No. OIG-509.)
  
  As noted in our earlier post, SEC OIG Report on Madoff: [...]
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  Posted: September 04, 2009, 6:12pm EDT
  by Edith Orenstein

• SEC OIG Report On Madoff Affair: A Tale Of Redemption

  Number of comments: 4
  "Madoff's firm never had to face redemption." That observation, one among many noted by a hedge fund manager in a 2003 complaint filed with the SEC regarding suspect activity of Bernard L. Madoff Investment Securities, struck me as the most ironic if not poignant sentence in the Executive Summary of' [...]
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  Posted: September 03, 2009, 12:53am EDT
  by Edith Orenstein

• Predictions And Lessons Learned

  Number of comments: 1
  Our blog is a member of the Forbes Business & Finance Blog Network. Member blogs were asked to consider writing a post on the following question:
  
  September 15, 2009 marks the first anniversary of the fall of Lehman Brothers and the global financial meltdown.What is your economic forecast [...]
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  Posted: September 01, 2009, 9:00am EDT
  by Edith Orenstein

• IASB Updates G-20; FASB, IASB Seek Comment On Proposals

  Number of comments: 0
  With the first of three joint IASB-FASB roundtables on financial instruments accounting set to take place later this week in Tokyo, (followed by roundtables in London and Norwalk, CT), the IASB released on Aug. 28 an updated table summarizing the IASB's response to recommendations made by the G-20 [...]
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  Posted: August 30, 2009, 9:55pm EDT
  by Edith Orenstein

• Bernanke Reappointed Chairman of FRB; Kroeker Named Chief Accountant, SEC

  Number of comments: 0
  Two big appointments announced earlier today: President Barack Obama announced this morning that he is nominating Ben Bernanke to serve a second term as chairman of the Federal Reserve Board. The reappointment is subject to confirmation by the full Senate. Read the White House transcript of the President's and [...]
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  Posted: August 25, 2009, 11:05am EDT
  by Edith Orenstein