Getting to the Bottom of Repurchase Agreements (or Repos)

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Financial Accounting, Fraud Accounting.

The Securities and Exchange Commission is asking public-company CFOs for better disclosures and additional information about repurchase agreements, or repos, which are the same transactions that Lehman Brothers used to make its balance sheet look healthy before the investment bank collapsed into bankruptcy. Based on company responses, the SEC could ask issuers to amend their filings… Read more »

New Year Resolutions for Audit Committees?

Posted by & filed under All Articles, Auditing.

The Sarbanes-Oxley Act of 2002 increased audit committees’ responsibilities and authority, and raised the bar on the independence of members. As a result, the SEC and the stock exchanges also proposed new regulations and rules to strengthen audit committees. A recent report by the KPMG Audit Committee Institute presents New Year’s guidance for audit committees… Read more »

Is the SEC Going to Get Tough On Compliance with Executive Pay Disclosures?

Posted by & filed under All Articles, Financial Reporting and Analysis, Financial Statement Analysis.

The SEC revised its disclosure guidelines for executive pay in late 2006. Since that time the regulator has been sending out letters to violator companies with insufficient disclosures, but has seen little compliance. Now the commission indicates that reviews will be tighter and there’s no room for a “Mister Nice Guy” approach. In fact, its… Read more »

Times are Tough for Everyone: Including the PCAOB!

Posted by & filed under All Articles, Auditing.

Just a week before the Supreme Court hears oral arguments about constitutionality of the Public Company Accounting Oversight Board (PCAOB) and why it should be dissolved, the members of the Board asked for a 16% in the overseer’s 2010 budget. This amounts to an additional $25.7 million to hire 60 more employees, for international inspections,… Read more »

What are Non-GAAP Financial Measures?

Posted by & filed under All Articles.

Amgen is a biotechnology firm that develops and manufactures human therapeutics that fight cancer, kidney disease, rheumatoid arthritis and other serious illnesses. As part of its 2008 financial report, the Company issued non-GAAP financial measures to facilitate additional analysis by investors. QUESTIONS: In one paragraph, briefly describe non-GAAP financial measures and how they differ from… Read more »