Compliance: Page 3

Your financial controls probably don't work under today's conditions

With staff remote, executives in survival mode, and hundreds of billions in assistance pouring into the economy, the chances of mistakes and abuse getting past safeguards are heightened, accounting specialists say.

By Robert Freedman • July 14, 2020

New bankruptcy process a 'game-changer' for COVID-hit small businesses

Subsection 5 favors owners keeping their equity through a quicker and cheaper reorganization than exists under regular Chapter 11 rules.

By Robert Freedman • July 13, 2020

'Bonus depreciation' rule fix makes property improvements more attractive

Companies have a new tax incentive to remodel property post-COVID now that qualified improvement property can receive the 15-year recovery treatment, with retroactive relief available. 

By Ed McCarthy • July 12, 2020

Contracting practices in spotlight in DOJ-FTC vertical merger guidelines

The guidelines give federal antitrust regulators a roadmap for determining if a proposed merger would benefit consumers or harm competition.

By Ted Knutson • July 08, 2020

Alexion pharma settles SEC false books charges

Subsidiaries of the company allegedly paid foreign government officials to provide favorable regulatory treatment for, and falsified records about, one of its drugs. 

By Robert Freedman • July 05, 2020

Opinion

How COVID-19 is changing conversations about going concern

CFOs should expect more — and more targeted — questions as auditors try to get a picture of how well their organization is positioned to survive the downturn. 

By Bob Dohrer • June 30, 2020

Companies face higher costs after dismissing auditor's tax services

If the dismissal is only for appearances, it's an expensive move, researchers say.

By Robert Freedman • June 29, 2020

Novartis to pay $112M fine for bad accounting controls

Company subsidiaries used improper payments to boost business in some countries. 

By Robert Freedman • June 26, 2020

Tech firms face tax bite after Supreme Court lets IRS allocation rule stand

Facebook, others were hoping the top court would end an IRS practice that forces more stock compensation to be allocated to foreign subsidiaries. 

By Robert Freedman • June 23, 2020

CFOs can access extra cash in move to new lease accounting rules

FASB is delaying the move to ASC 842 but, if you need money, the transition could provide it in some of the lease terms.   

By Robert Freedman • June 22, 2020

Feds issue streamlined PPP loan forgiveness form

Under an EZ form, you only have to complete a brief calculation and certify your representations to get out of repaying your payroll protection assistance.

By Robert Freedman • June 18, 2020

SEC charges insurer, ex-CFO with bad loss reserves disclosures

AmTrust Financial Services failed to disclose its CFO's deviation from its reserving processes, and changed the company's reserves estimates. 

By Robert Freedman • June 18, 2020

How companies can account for PPP loans under FASB ASC 470

FASB hasn't explained how for-profit businesses should recognize forgivable loans and other government assistance, but other standards are available.

By Robert Freedman • June 15, 2020

Fed set to launch Main Street Lending Program for loans up to $300M

Large and flexible loans will be available as the Fed gets into the business of direct lending to help companies retool as stay-at-home-mandates phase out.

By Robert Freedman • June 09, 2020

Study: Higher-paid consultants recommend higher CEO compensation

Regulators tend to see conflicts in cross-selling by multi-service firms, and new research suggests single-service firms might have conflicts, too.

By Robert Freedman • June 09, 2020

SEC fines insurance company $900K for misstating CEO perks

In proxy statements, Argo Group said it had provided $1.2 million in perquisites and personal benefits to its then CEO, but the amount was $5.3 million, the SEC says. 

By Robert Freedman • June 06, 2020

PPP loans now only require 60% of funds to be used for payroll

The federal government enacted several sought-after changes to make the small loan program more useful to businesses as mandatory closures ease. 

By Robert Freedman • June 05, 2020

CARES Act tax breaks are great — unless they're not

The new retention credit, payroll tax deferral, and expansion of net operating losses, among other tax assistance to help during the slowdown, might not sync with your company's financial situation. 

By Robert Freedman • May 28, 2020

SEC hits PE firm Ares with $1M compliance fine

The firm's investment advisory arm used non-public information about a portfolio company from its private equity arm without adequate controls.

By Robert Freedman • May 27, 2020

Need and eligibility keys to avoiding PPP loan liability risk

Document what goes into your decision to apply for a loan to protect yourself and your company if you're hit with an audit or lawsuit, an attorney says. 

By Robert Freedman • May 25, 2020

As going-concern opinions rise, so too could debt covenant defaults

Audits that question the likelihood of a company's survival during the downturn could inadvertently cause a breach in credit terms.

By Robert Freedman • May 21, 2020

Delay in lease, revenue recognition rules made official

A one-year delay in new standards mainly affects private companies and nonprofits that haven't yet put them in place. 

By Robert Freedman • May 21, 2020

Morningstar hit with $3.5M fine for conflicts of interest

The credit rating agency, in several instances, failed to separate its analysts from selling and marketing to potential clients. 

By Robert Freedman • May 18, 2020

CFOs urged to buy back debt if it is trading below par value

Credit market dislocations make now a potentially good time to deleverage balance sheets.

By Robert Freedman • May 18, 2020

SEC charges companies for making false COVID-19 claims

The actions signal a stepped-up federal effort to curb marketing ploys playing on fears of infection.

By Robert Freedman • May 17, 2020