March 31, 2005
Improved Disclosure for Public Companies Around the World... The Trend Continues
As the US leads in corporate governance, even while its own companies complain, other countries follow suit. In many parts of the world where secrecy has prevailed in every aspect of business, there is a light starting to shine. That light is the light of improved corporate governance.
See this excerpt on Korea...
"LG leads corporate governance reform
The 1997 financial crisis has triggered major structural changes in Korea's family-controlled conglomerates, placing the nation at the forefront of corporate governance reform seen in Asia over the past few years.
Companies have tightened rules for disclosure and regulatory filings, filled at least half of their boards with outside directors, and strengthened internal codes of conduct and monitoring in a bid to promote transparent management." Click here for the complete article.
To simply your company's Sarbanes-Oxley compliance efforts, see www.issuescentral.com to learn more about the Sarbanes-Oxley Compliance Playbook(tm).
See this excerpt on Korea...
"LG leads corporate governance reform
The 1997 financial crisis has triggered major structural changes in Korea's family-controlled conglomerates, placing the nation at the forefront of corporate governance reform seen in Asia over the past few years.
Companies have tightened rules for disclosure and regulatory filings, filled at least half of their boards with outside directors, and strengthened internal codes of conduct and monitoring in a bid to promote transparent management." Click here for the complete article.
To simply your company's Sarbanes-Oxley compliance efforts, see www.issuescentral.com to learn more about the Sarbanes-Oxley Compliance Playbook(tm).
March 30, 2005
Finally a Chance at Governance at the World Bank
With all the corruption and waste at the World Bank, finally someone who is disciplined and can make a difference. Paul Wolfowitz is turning out to be more of a diplomat already than his critics had counted on. Little by little, he is wooing the EU. We all know that organization has got real problems. Go Paul!
An excerpt on this topic:
"Wolfowitz pledges commitment to World Bank mission
BRUSSELS, Belgium European Union officials say they back Deputy Defense Secretary Paul Wolfowitz as the new head of the World Bank.The endorsement comes after Wolfowitz told officials he's deeply committed to carrying on the bank's anti-poverty work.
E-U officials in Belgium today quizzed President Bush's nominee to head the Washington-based bank. Wolfowitz tells them, "helping people lift themselves out of poverty is truly a noble mission."
His nomination had gotten a chilly reception in some European capitals, where officials who opposed the Iraq war point to Wolfowitz's role as one of its planners. Critics have described him as having a reputation for unilateralism and a lack of development experience." For the entire article, click here.
To find out how your organization can learn more about decreasing fraud and inefficiencies for your publicly held company's Sarbanes-Oxley project, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm).
An excerpt on this topic:
"Wolfowitz pledges commitment to World Bank mission
BRUSSELS, Belgium European Union officials say they back Deputy Defense Secretary Paul Wolfowitz as the new head of the World Bank.The endorsement comes after Wolfowitz told officials he's deeply committed to carrying on the bank's anti-poverty work.
E-U officials in Belgium today quizzed President Bush's nominee to head the Washington-based bank. Wolfowitz tells them, "helping people lift themselves out of poverty is truly a noble mission."
His nomination had gotten a chilly reception in some European capitals, where officials who opposed the Iraq war point to Wolfowitz's role as one of its planners. Critics have described him as having a reputation for unilateralism and a lack of development experience." For the entire article, click here.
To find out how your organization can learn more about decreasing fraud and inefficiencies for your publicly held company's Sarbanes-Oxley project, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm).
March 23, 2005
SEC Roundtable Scheduled for April 13 to Review 404
The first year of complying with Section 404 has been a gong show at many companies. There has been poor planning and inconsistent project management and pure panic. This has led to very costly projects where it was not necessary.
While making sure internal controls are adequate is far from fun, the reality is that the number of restatements this year supports the poor control over financial reporting in many companies. How can we go back to a place where there is no transparency? We have the best financial markets in the world and we want to continue to lead.
Run better projects. The first year hardwork is done. Do not roll progress in this area.
An excerpt on this topic:
"...The outcry has reached such a fever pitch in recent months that the Securities and Exchange Commission has scheduled a roundtable for April 13 in Washington.
Meanwhile, critics say federal regulators, particularly the SEC and the Public Company Accounting Oversight Board, must do a better job spelling out just what companies must do and how much they should disclose in order to satisfy the law. The accounting board is a nonprofit, private-sector oversight entity created by Sarbanes-Oxley and chaired by William McDonough, former president and chief executive officer of the Federal Reserve Bank of New York...."
For the complete article, click here.
For information on managing your Section 404 in a comprehensive, smart and economical way, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm).
While making sure internal controls are adequate is far from fun, the reality is that the number of restatements this year supports the poor control over financial reporting in many companies. How can we go back to a place where there is no transparency? We have the best financial markets in the world and we want to continue to lead.
Run better projects. The first year hardwork is done. Do not roll progress in this area.
An excerpt on this topic:
"...The outcry has reached such a fever pitch in recent months that the Securities and Exchange Commission has scheduled a roundtable for April 13 in Washington.
Meanwhile, critics say federal regulators, particularly the SEC and the Public Company Accounting Oversight Board, must do a better job spelling out just what companies must do and how much they should disclose in order to satisfy the law. The accounting board is a nonprofit, private-sector oversight entity created by Sarbanes-Oxley and chaired by William McDonough, former president and chief executive officer of the Federal Reserve Bank of New York...."
For the complete article, click here.
For information on managing your Section 404 in a comprehensive, smart and economical way, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook(tm).
March 21, 2005
WorldCom Board Pays Big for Ebbers' Errors
Being on a board is likely to become even more unpopular after the WorldCom settlement where WorldCom directors are paying their own money for the company's accounting problems.
An excerpt is here:
"landmark agreement by former WorldCom directors to pay millions of dollars of their own money to settle claims by investors has been revived about six weeks after it was scuttled by objections from other defendants in the case.
Under the terms of the settlement reached on Friday, 11 former WorldCom directors will pay $US20 million ($25 million) out of their own pockets to settle with Alan Hevesi, comptroller of New York and trustee of the state's Common Retirement Fund."
Click here for the complete article.
To keep your company out of trouble and increase transparency, learn more about Sarbanes-Oxley Compliance Playbook(tm) at www.issuescentral.com or call 416.977.1496 today.
An excerpt is here:
"landmark agreement by former WorldCom directors to pay millions of dollars of their own money to settle claims by investors has been revived about six weeks after it was scuttled by objections from other defendants in the case.
Under the terms of the settlement reached on Friday, 11 former WorldCom directors will pay $US20 million ($25 million) out of their own pockets to settle with Alan Hevesi, comptroller of New York and trustee of the state's Common Retirement Fund."
Click here for the complete article.
To keep your company out of trouble and increase transparency, learn more about Sarbanes-Oxley Compliance Playbook(tm) at www.issuescentral.com or call 416.977.1496 today.
March 18, 2005
Unforeseen Impact of Section 404 on CFOs
Share price for problems in publicly held companys' internal controls are not taking the hit but the CFO certainly is. CFO turnover is increasing dramatically. They are definitely in the hot seat and they are an easy target. Remember folks, the CEO also has responsibility for internal controls.
An excerpt shown here:
"Corporate Executive Board ... announced their research reveals that Sarbanes Oxley Section 404 legislation is causing many more companies to miss deadlines for filing their financial reports; with nearly 300 companies indicating that they cannot file their 10-Ks with the SEC on time (versus only 70 last year). Additionally, the finding of a material weakness in a company's control structure is having a significant impact on CFO turnover, not on company share price."
To take the pressure off of your Sarbanes-Oxley project, see www.issuescentral.com to learn more about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt shown here:
"Corporate Executive Board ... announced their research reveals that Sarbanes Oxley Section 404 legislation is causing many more companies to miss deadlines for filing their financial reports; with nearly 300 companies indicating that they cannot file their 10-Ks with the SEC on time (versus only 70 last year). Additionally, the finding of a material weakness in a company's control structure is having a significant impact on CFO turnover, not on company share price."
To take the pressure off of your Sarbanes-Oxley project, see www.issuescentral.com to learn more about Sarbanes-Oxley Compliance Playbook(tm).
March 17, 2005
Many Delays and Re-statements This Year
Just the latest in the delays to file Sarbanes-Oxley Section 404 certifications is Cray Corporation. Company after company is late or restating. There has been alot groaning about the work to certify internal controls, but the legislation certainly is highlighting problems everywhere. This legislation is here to stay due to the results it is turning up.
An excerpt here:
"Seattle-based Cray said it expects to file its annual report on March 31, but the section pertaining to Sarbanes-Oxley won't be done by then. Company officials said they plan to take advantage of a 45-day extension granted to companies of its size."
For the entire article, click here.
To see how your company can avoid the Section 404 pitfalls, see www.issuescentral.com and take a tour of Sarbanes-Oxley Compliance Playbook(tm).
An excerpt here:
"Seattle-based Cray said it expects to file its annual report on March 31, but the section pertaining to Sarbanes-Oxley won't be done by then. Company officials said they plan to take advantage of a 45-day extension granted to companies of its size."
For the entire article, click here.
To see how your company can avoid the Section 404 pitfalls, see www.issuescentral.com and take a tour of Sarbanes-Oxley Compliance Playbook(tm).
March 11, 2005
PCAOB Considers Changes to Audit Reports
Yesterday, the PCAOB got an increase to its budget. For those who counted them out, look out! Here they come with more reforms to the audit standards for the nation's external auditors.
An article here from WEB CPA:
"PCAOB mulls reporting model reforms Regulator entertains proposals to abandon 'pass/fail' audit reports By Ken Rankin
Washington - Regulators at the Public Company Accounting Oversight Board are wrestling with proposals to abandon the current "pass/fail" auditor reporting model for informing investors of the accuracy of corporate financial statements - a move that could require independent accountants to provide considerably more information about the veracity of their clients' financial reports.
Whether the additional work and information will translate into more useful data for investors was a matter of considerable debate during the latest meeting of the PCAOB's Standing Advisory Group." Click here for the complete article.
To find out how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com for more information on the Sarbanes-Oxley Compliance Playbook(tm)
An article here from WEB CPA:
"PCAOB mulls reporting model reforms Regulator entertains proposals to abandon 'pass/fail' audit reports By Ken Rankin
Washington - Regulators at the Public Company Accounting Oversight Board are wrestling with proposals to abandon the current "pass/fail" auditor reporting model for informing investors of the accuracy of corporate financial statements - a move that could require independent accountants to provide considerably more information about the veracity of their clients' financial reports.
Whether the additional work and information will translate into more useful data for investors was a matter of considerable debate during the latest meeting of the PCAOB's Standing Advisory Group." Click here for the complete article.
To find out how your company can rapidly and effectively comply with Sarbanes-Oxley, see www.issuescentral.com for more information on the Sarbanes-Oxley Compliance Playbook(tm)
March 08, 2005
Reactions Come in From Europe on Section 404 Delay
The reaction to the one year delay for small cap and foreign private issuers continues to be good. Now the tough task of doing the job.
An excerpt from an article here from the Financial Times:
"The deferral means foreign companies that were due to comply after July 15 this year will have more time to learn from the experience of the large US domestic ("accelerated") filers.
This breathing space allows foreign filers to improve the quality of their Sarbanes-Oxley project, avoid unnecessary cost and capitalise on the opportunity to assign new priorities to other projects, notably those concerned with implementation of enterprise resource planning and other improvements to their internal-controls environment."
For the complete article, click here.
To learn how your company can rapidly and affordable comply with Sarbanes-Oxley, see www.issuescentral.com for more information about Sarbanes-Oxley Compliance Playbook(tm).
An excerpt from an article here from the Financial Times:
"The deferral means foreign companies that were due to comply after July 15 this year will have more time to learn from the experience of the large US domestic ("accelerated") filers.
This breathing space allows foreign filers to improve the quality of their Sarbanes-Oxley project, avoid unnecessary cost and capitalise on the opportunity to assign new priorities to other projects, notably those concerned with implementation of enterprise resource planning and other improvements to their internal-controls environment."
For the complete article, click here.
To learn how your company can rapidly and affordable comply with Sarbanes-Oxley, see www.issuescentral.com for more information about Sarbanes-Oxley Compliance Playbook(tm).
March 03, 2005
SEC Delays Section 404 for Small Companies and Foreign Private Issuers
The SEC is reliable. About a month ago, comments were made in London by Donald T. Nicolaisen, that they were considering a delay for Foreign Private Issuers. So here it is today. They made it official, for FPI's and small companies, there will be a delay for a year. Hopefully companies will use this time to work their projects wisely as opposed to procrastinating. Because if your company has had four years or more (Act was passed in August of 2002) and you still have big issues, then the market will not be kind.
"The Commission extended the original Section 404 compliance dates for all issuers in February 2004 (see Release No. 33-8392). Under the latest extension, a company that is not required to file its annual and quarterly reports on an accelerated basis (non-accelerated filer) and a foreign private issuer filing its annual reports on Form 20-F or 40-F, must begin to comply with the internal control over financial reporting requirements for its first fiscal year ending on or after July 15, 2006. This is a one-year extension from the previously established July 15, 2005, compliance date for non-accelerated filers and foreign private issuers. The Commission similarly has extended the compliance date for these companies relating to requirements regarding evaluation of internal control over financial reporting and management certification requirements. Please refer to Release No. 33-8545 for more detailed information."
For the entire news release, click here.
To learn how your company can effectively and affordably comply with Sarbanes-Oxley Section 404, see www.issuescentral.com to find out about a free trial with Sarbanes-Oxley Compliance Playbook(tm).
"The Commission extended the original Section 404 compliance dates for all issuers in February 2004 (see Release No. 33-8392). Under the latest extension, a company that is not required to file its annual and quarterly reports on an accelerated basis (non-accelerated filer) and a foreign private issuer filing its annual reports on Form 20-F or 40-F, must begin to comply with the internal control over financial reporting requirements for its first fiscal year ending on or after July 15, 2006. This is a one-year extension from the previously established July 15, 2005, compliance date for non-accelerated filers and foreign private issuers. The Commission similarly has extended the compliance date for these companies relating to requirements regarding evaluation of internal control over financial reporting and management certification requirements. Please refer to Release No. 33-8545 for more detailed information."
For the entire news release, click here.
To learn how your company can effectively and affordably comply with Sarbanes-Oxley Section 404, see www.issuescentral.com to find out about a free trial with Sarbanes-Oxley Compliance Playbook(tm).
March 02, 2005
Hell Hath no Fury like the SEC
Companies just do not seem to get the message: the SEC is always watching. Why make choices that will end up in disaster. So for Biogen, not only does the stock tank due to bad drug testing trial results, but the executives could end up in the slammer for allegedly improper stock sales before the bad news was reported.
An excerpt on this is here:
"Biogen execs' stock deals under SEC microscope
By Brett ArendsWednesday, March 2, 2005
Cambridge-based Biogen Idec, Inc. has come under federal scrutiny over executive stock deals that reaped millions shortly before shares plummeted, sources have told the Herald.
The Securities and Exchange Commission is preparing to interview executives who made $10.7 million on stock sales before the company yanked its high-flying new multiple sclerosis drug.
Both Biogen and the SEC yesterday refused to comment.
Biogen stock crashed this week to $41.26 from $67 after the company said it had suspended sales of big new MS drug Tysabri. Two patients taking the drug with another treatment had developed a rare disease of the nervous system, and one had died."
Click here for the entire article.
To learn how your company can stay out of trouble on Sarbanes-Oxley and do it a reasonable cost, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook.
An excerpt on this is here:
"Biogen execs' stock deals under SEC microscope
By Brett ArendsWednesday, March 2, 2005
Cambridge-based Biogen Idec, Inc. has come under federal scrutiny over executive stock deals that reaped millions shortly before shares plummeted, sources have told the Herald.
The Securities and Exchange Commission is preparing to interview executives who made $10.7 million on stock sales before the company yanked its high-flying new multiple sclerosis drug.
Both Biogen and the SEC yesterday refused to comment.
Biogen stock crashed this week to $41.26 from $67 after the company said it had suspended sales of big new MS drug Tysabri. Two patients taking the drug with another treatment had developed a rare disease of the nervous system, and one had died."
Click here for the entire article.
To learn how your company can stay out of trouble on Sarbanes-Oxley and do it a reasonable cost, see www.issuescentral.com and learn more about the Sarbanes-Oxley Compliance Playbook.
