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December 4, 2022

Accounting News Roundup: IASB Threatens to Walk Away From FASB; The Last of the XBRL Stragglers; Yet One More Bankrupt City | 08.04.11

Global accounting rules? Don’t tread on me, U.S. says [Globe and Mail]
The United States Securities and Exchange Commission first suggested four years ago that public companies could eventually use the global standards, known as IFRS. Now, however, the agency’s staff has delivered a new working paper describing the idea of “condorsement.” It’s supposed to be a combination of “convergence” and “endorsement,” but it might be better named “rejectstinance,” for obstinately rejecting a global standard.

Attorney With Ties to Goldman and SEC Continues to Cause Controversy [CompliancEX]
An attorney for the Securities and Exchange Commission signed off on Goldman Sachs’ collateralized debt obligation known as Abacus when he worked in the private sector, and he may have to testify in a civil trial on the issue, FINalternatives reports. Adam Glass, who served as an outside attorney to Paulson & Co., approved Abacus-ASC1-2007, worth over a billion dollars. According to FINalternatives, the SEC said the CDO “was structured and marketed by Goldman on behalf of Paulson, which made a mint by shorting the CDO.”

IASB threatens to weaken ties with FASB [GFS]
The International Accounting Standards Board has threatened to stop engaging in new joint projects with its US counterpart, if the US Securities and Exchange Commission does not endorse its IFRS standards. The IASB’s vice chairman, Ian Mackintosh, made the announcement during a webcast in which he answered industry questions about the IASB’s recent consultation over its future strategy.

Bruised regulators brace for Dodd-Frank court fights [Reuters]
U.S. regulators are scrambling to bulletproof dozens of financial reforms after a court last month tossed out an important part of the Dodd-Frank financial oversight law. The federal appeals court ruling faulted the Securities and Exchange Commission for conducting a flawed economic analysis to support a rule to make it easier for shareholders to nominate directors to corporate boards, a process called “proxy access.

Ex-auditor admits violating state law [Boston Globe]
Former Massachusetts auditor A. Joseph DeNucci agreed yesterday to pay a $2,000 civil fine after admitting he violated state conflict of interest law by hiring his 75-year-old cousin to work in his office in 2008.

Bondholders Win in Rhode Island [WSJ]
Central Falls, R.I., a city of 19,000 residents that filed for bankruptcy Monday, is a bondholder’s dream. Thanks to a new state law that places bondholders ahead of other creditors, Central Falls plans to pay investors the entire $635,000 it owes them in October.

XBRL Enters the Final Phase [Compliance Week]
When public companies file their latest financial statements in coming weeks, almost all of them will be required to use the XBRL tagging system for interactive data. The smallest companies have had three years to prepare, but many still struggle with the technology. “I’d say a lot of the smaller, ‘Wave 3’ companies are still pushing this off,” says Raul Varela, vice president at Rivet Software.

Nearly $1M recovered by auditor [Clarion Ledger]
Nearly $1 million in misappropriated or misspent funds was recovered by the state auditor’s office in the last fiscal year.
A report released by State Auditor Stacey Pickering shows the funds ranged from a 35-cent repayment for an unspecified piece of missing equipment from a state Department of Public Safety employee to $1.2 million embezzled by a now-deceased accounting clerk in Jackson County.

Global accounting rules? Don’t tread on me, U.S. says [Globe and Mail]
The United States Securities and Exchange Commission first suggested four years ago that public companies could eventually use the global standards, known as IFRS. Now, however, the agency’s staff has delivered a new working paper describing the idea of “condorsement.” It’s supposed to be a combination of “convergence” and “endorsement,” but it might be better named “rejectstinance,” for obstinately rejecting a global standard.

Attorney With Ties to Goldman and SEC Continues to Cause Controversy [CompliancEX]
An attorney for the Securities and Exchange Commission signed off on Goldman Sachs’ collateralized debt obligation known as Abacus when he worked in the private sector, and he may have to testify in a civil trial on the issue, FINalternatives reports. Adam Glass, who served as an outside attorney to Paulson & Co., approved Abacus-ASC1-2007, worth over a billion dollars. According to FINalternatives, the SEC said the CDO “was structured and marketed by Goldman on behalf of Paulson, which made a mint by shorting the CDO.”

IASB threatens to weaken ties with FASB [GFS]
The International Accounting Standards Board has threatened to stop engaging in new joint projects with its US counterpart, if the US Securities and Exchange Commission does not endorse its IFRS standards. The IASB’s vice chairman, Ian Mackintosh, made the announcement during a webcast in which he answered industry questions about the IASB’s recent consultation over its future strategy.

Bruised regulators brace for Dodd-Frank court fights [Reuters]
U.S. regulators are scrambling to bulletproof dozens of financial reforms after a court last month tossed out an important part of the Dodd-Frank financial oversight law. The federal appeals court ruling faulted the Securities and Exchange Commission for conducting a flawed economic analysis to support a rule to make it easier for shareholders to nominate directors to corporate boards, a process called “proxy access.

Ex-auditor admits violating state law [Boston Globe]
Former Massachusetts auditor A. Joseph DeNucci agreed yesterday to pay a $2,000 civil fine after admitting he violated state conflict of interest law by hiring his 75-year-old cousin to work in his office in 2008.

Bondholders Win in Rhode Island [WSJ]
Central Falls, R.I., a city of 19,000 residents that filed for bankruptcy Monday, is a bondholder’s dream. Thanks to a new state law that places bondholders ahead of other creditors, Central Falls plans to pay investors the entire $635,000 it owes them in October.

XBRL Enters the Final Phase [Compliance Week]
When public companies file their latest financial statements in coming weeks, almost all of them will be required to use the XBRL tagging system for interactive data. The smallest companies have had three years to prepare, but many still struggle with the technology. “I’d say a lot of the smaller, ‘Wave 3’ companies are still pushing this off,” says Raul Varela, vice president at Rivet Software.

Nearly $1M recovered by auditor [Clarion Ledger]
Nearly $1 million in misappropriated or misspent funds was recovered by the state auditor’s office in the last fiscal year.
A report released by State Auditor Stacey Pickering shows the funds ranged from a 35-cent repayment for an unspecified piece of missing equipment from a state Department of Public Safety employee to $1.2 million embezzled by a now-deceased accounting clerk in Jackson County.

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