Accounting standards

The Securities and Exchange Commission has barred Enron North America's former chief accounting officer from practicing before it for four years.

As expected, the Securities and Exchange Commission this week postponed for a year the final phase-in period for rules that would shorten the amount of time that larger companies, known as "accelerated filers," have to file their quarterly and annual reports.

Officials at the Public Company Oversight Board unveiled an aggressive agenda for the coming year that may result in as many as 11 new standards for auditors in areas ranging from corporate fraud detection and reporting to wrestling with related-party transactions.

Fannie Mae said that it won't file its third quarter earnings report with the Securities and Exchange Commission by the end of this week because its independent auditor, KPMG, wouldn't sign off on its financials until issues related to the SEC's investigation into the company's accounting are resolved.

As expected, the Securities and Exchange Commission this week postponed for a year the final phase-in period for rules that would shorten the amount of time that larger companies, known as "accelerated filers," have to file their quarterly and annual reports.

As expected, the Securities and Exchange Commission this week postponed for a year the final phase-in period for rules that would shorten the amount of time that larger companies, known as "accelerated filers," have to file their quarterly and annual reports.

As expected, the Securities and Exchange Commission this week postponed for a year the final phase-in period for rules that would shorten the amount of time that larger companies, known as "accelerated filers," have to file their quarterly and annual reports.

Smaller companies could get a reprieve from the Securities and Exchange Commission on filing internal control documentation, according to published reports.

The Council of the International Federation of Accountants, a group that sets international standards on ethics, auditing and assurance, education, and public sector accounting, has named PricewaterhouseCoopers partner Graham Ward, CBE, MA, FCA, as its new president for a two-year term.

The Securities and Exchange Commission voted this week to open to public comment proposed new rules related to the governance, transparency, oversight and ownership of the stock exchanges.

The National Association of Securities Dealers charged H&R Block Financial Advisors Inc., the investment arm of the tax prep giant, with fraud in the sale of $16 million worth of Enron Corp. bonds after the energy firm's finances and bond ratings had begun to collapse.

Two former Computer Associates executives settled Securities and Exchange Commission charges that they participated in a widespread practice that resulted in the software maker's improper recognition of revenue.

Citing objections from banking regulators including the Federal Reserve, the Securities and Exchange Commission said it would delay a plan to oversee brokerage services offered by banks until March 31, 2005.

The American Institute of CPAs has adopted ethics rules that place new requirements on members who outsource clients' work to third-party providers and broaden the definition of those providers.

Media and entertainment giant Time Warner Inc. said that it had established $500 million in legal reserves related to pending government investigations, and that it intends to restate its accounting for its interests in AOL Europe prior to 2002.

Following its earlier decision to delay the implementation of a proposed standard to mandate stock option expensing, members of the Financial Accounting Standards Board decided that the standard will apply to private companies and small business issuers for fiscal years beginning after Dec. 15, 2005, as originally planned.

The European Commission has proposed changes to European Union accounting rules that it says will help shore up confidence in financial reporting.

Members of the Professional Ethics Executive Committee of the American Institute of CPAs acknowledged a series of practitioner's concerns with regard to PEEC's revised interpretation of rules governing members who offer non-attest services to attest clients.

Thomas C. Newkirk, associate director in the Securities and Exchange Commission's Division of Enforcement, will depart the commission in November after 19 years of service to become a partner in the Washington office of the law firm of Jenner & Block LLP.

In two separate votes at a meeting today, one split and one unanimous, the Securities and Exchange Commission decided to require the registration of most hedge funds, and to propose new rules for companies seeking an initial public offering. Chairman William Donaldson and two Democratic commissioners voted against the two Republican commissioners to push through the tough new rules for hedge funds, which had previously been only lightly regulated. Traditionally investment vehicles for the extraordinarily wealthy, hedge funds have grown enormously over the past few years, both in terms of their assets under management and the types of investors involved. Of particular concern to many are the number of banks and pension plans that have turned to hedge funds as stock market returns have diminished from their dot-com highs. SEC registration would impose new record-keeping and information-sharing burdens on the industry, and require them to allow SEC inspections. Industry groups have complained that the new rules would hit funds with unfairly heavy costs for registration and compliance personnel, among other things. The other, unanimous decision by the commissioners was to propose changes for IPO-seeking companies that would, in some cases, eliminate the 70-year-old "quiet period" before the offering when they must remain incommunicado. "Well-known, seasoned issuers" would be allowed to distribute much more information than they currently can, in the form of media interviews, press releases and even possibly advertising. The proposal will now be sent out for public comment, with opinions required with 75 days of the proposal's publication in the Federal Register.