Tag Archives: INTERNAL AUDITING

An Audit Committee Update

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We (that is Carol and George, your blog authors), frequently post about audit committee issues.  For audit committees that want to perform at the highest level possible, PLI has a great program in June.

 

PLI’s Audit Committees and Financial Reporting 2016: Recent Developments and Current Issues program will be presented June 21, 2016 in NYC.  It will be groupcast in several cities and also available via webcast.  Topics discussed will include current SEC reporting issues, audit committee oversight of the implementation of new accounting standards such as revenue recognition and leases, and PCAOB developments for the audit committee.

 

You can learn more about the detailed agenda and how to register at:

 

www.pli.edu/Content/Seminar/Audit_Committees_and_Financial_Reporting/_/N-4kZ1z11i36?fromsearch=false&ID=259781

 

As always, your thoughts and comments are welcome!

Comment of the Week – Market Risk Reminder

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We have been discussing the topic of Market Risk Disclosures a lot in this environment of volatile exchange rates, bumpy commodity prices and uncertain interest rates. This disclosure is one of the most confusing parts of Regulation S-K. Without going into a whole lot of details about S-K Item 305 (which we covered in an earlier blog at seciblog.pli.edu/?p=489), as we move towards the end of the first quarter it will continue to be important to focus on getting this disclosure right.

 

So, with this post as a reminder, here is a quick example in a recent comment:

Item7A. Quantitative and Qualitative Disclosures About Market Risk, page 63

  1. Please provide an analysis on whether your “cash flow hedges,” discussed in the second- to-last paragraph of page 63, are material, such that you would need to provide the disclosure in Item 305(a) of Regulation S-K. Please see General Instruction 5.B to Item 305(a) and (b).

 

As usual, your thoughts and comments are welcome!

Form 10-K Tip Eight – Conflict Minerals and Form SD Disclosure

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In our One-Hour Briefing presenting our thoughts on key issues for 2016 Form 10-K’s we discussed Conflict Mineral Reporting. Companies need to continue to refine their reporting processes as they gain experience with the rule and also watch for developments in the continuing legal challenges to the rule.

 

The short and sweet news here is that not a lot has changed since last year. That said, since this is a calendar year reporting requirement for all companies with a May 31 due date, there is time for change to occur before the due date.

 

One are that is not different is that because of the April 2014 court decision, issuers are still not required to report whether any of their products have “not been found to be DRC conflict free”.  You can review the SEC Order for the Partial Stay of the rule at:

www.sec.gov/rules/other/2014/34-72079.pdf

 

 

Corp Fin issued a Statement about the Court of Appeals decision which is at:

www.sec.gov/News/PublicStmt/Detail/PublicStmt/1370541681994

 

 

And there are SEC FAQ’s available at:

www.sec.gov/divisions/corpfin/guidance/conflictminerals-faq.htm

 

The FAQ’s do provide some process guidance, but the bottom line is that this area is still evolving.

 

As always, your thoughts and comments are welcome!

 

 

 

PS You can review the Form 10-K Tune-up Briefing and obtain CLE and CPE credit at:

www.pli.edu/Content/OnDemand/Second_Annual_Form_10_K_Tune_Up/_/N-4nZ1z116ku?fromsearch=false&ID=278540