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 Implementing
Section 404
The
Sarbanes-Oxley Act requires that all public companies do
something that they probably should have been doing anyway:
assign the CEO and the CFO authority over the company’s
internal controls and the opportunity to demonstrate competent
and transparent governance, not just to the SEC but to shareholders
and the financial community in general. While some public
companies may previously have managed with less-than-stellar
internal controls, those days are over. Full
Story |
Choosing
to Participate in the Political Process
It
is rare for people to be able to see that regulation of
the accounting profession is a highly political issue, both
inside and outside of the professional community. Regulation
and legislation involve political choices. Choosing not
to participate in the political process relieves one of
responsibility for making tough decisions, but, on the other
hand, not participating is akin to giving up. Full
Story
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Accounting
for Stock-Based Compensation: A Simple Proposal
The
proposed statement requires the recognition of the cost
of employee services received in exchange for equity instruments
in the financial statements. For public companies and those
nonpublic companies that so elect, that cost is based on
the fair value of the employees’ right to purchase
stock at a set price, which is evidenced by the issuance
of a financial instrument, the stock option.
Full Story
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