Accounting Policy and Practice Report Index-Summary

SANCTIONS

– Auditors

See AUDITOR LIABILITY

– Penalties

See PENALTIES

– Settlements

See SETTLEMENTS

SARBANES-OXLEY ACT

– Auditor liability

See AUDITOR LIABILITY

– Constitutionality of PCAOB, challenge to (U.S., rev grant), 496; Olson resignation not related to, 539; argument scheduled, 944; CII files amicus curiae brief supporting PCAOB, 989
– CSX Auto Corp., SEC seeks clawback of bonuses under SOX §304 from innocent CEO (D. Ariz.), 734; effect of case on calculus of restatements discussed, 833
– Derivative actions, private right of action does not exist under Sarbanes-Oxley forfeiture provision, court erred in defeating diversity jurisdiction over state law claims (9th Cir.), 50
– Financial restatements, total numbers continue to decline in 2009 due to SEC stance, greater SOX familiarity, analysis of trends, 657
– Internal controls

See INTERNAL CONTROLS

– Whistleblower protections

See WHISTLEBLOWERS

SCIENTER

– Atlas Mining, shareholder suit against outside auditor dismisses for failure to show materiality or adequately plead scienter (D. Idaho), 945
– Auditor liability, litigation increase in light of subprime crisis, defending auditors at pleading stage, analysis and perspective, 754
– BearingPoint, suit alleging accounting system fraud, scienter inadequately alleged, investors may amend complaint (4th Cir.), 736
– Cadence Design Sys., class action suit over improper revenue recognition by software design firm tossed for failure to adequately plead scienter (N.D. Cal.), 918
– Misstated financials, class securities claims dismissed for failure to adequately plead (9th Cir.), 144
– Navistar officials must face class action claims of systemic accounting fraud resulting in overstatement of income, Deloitte dismissed for failure to plead adequate scienter (N.D. Ill.), 784
– Priceline investors' securities fraud claims against auditor dismissed for failure to sufficiently allege (2d Cir.), 540
– Primary liability elements misread by lower court in Refco investor suit, SEC argues in amicus brief (2d. Cir.), 783
– Royal Ahold earnings overstatement, auditors also victims, investor complaint against Deloitte dismissed for failure to adequately plead (4th Cir.), 96

SECURITIES AND EXCHANGE COMMISSION (SEC)

– Appointments and personnel changes

– – Becker named general counsel and senior policy adviser, 164
– – Bullard named chair of Investor as Purchaser Subcomm. of Investor Advisory Comm., 841
– – Cross named director of corporate finance, replacing Parratt, 355
– – Davis named chair of Investor as Shareholder Subcomm. of Investor Advisory Comm., 841
– – Enforcement Div. restructuring

See Enforcement policy, this heading

– – 5 candidates under consideration for chief accountant position, feature report, 473
– – Gillan named senior adviser to Schapiro, 173
– – Hu named first director of new Division of Risk, Strategy, and Financial Innovation, 841
– – Industry and Markets Fellows Program, established to aid in risk assessment, restoring market confidence, 436
– – Investor advisory group announced, members to be named soon, 356; members named, 522; first meeting announced, 631; subpanels for education, services and voting issues review formed, 841
– – Kroeker named acting chief accountant replacing Hewitt, 19; appointment made permanent, 804
– – Krogstad and Mangold named academic accounting fellows for one-year terms, 624
– – Malhortra named senior adviser in Office of Chief Accountant, 164
– – Markel leaves for private sector, 19
– – Parratt named acting director of corporate finance, 19
– – Reisner named deputy director, Div. of Enforcement, 624
– – Richards stepping down as director of Office of Compliance Inspections and Examinations, 624
– – Salisbury named chair of Investor Education Subcomm. of Investor Advisory Comm., 841
– – Schapiro nominated by Obama to head agency, Dodd (D-Conn.) and trade groups endorse, 18; discusses plans at confirmation hearing, 77; confirmed twice, tenure may see enhanced enforcement, 114
– – Thomsen leaving as Enforcement chief, Khuzami of Deutsche Bank AG expected to succeed her, 164; Khuzami named to post, 204
– – Walsh to serve as acting director of Office of Compliance Inspections and Examinations, 624

– Broker-dealers

See BROKER-DEALERS

– Budget

– – House appropriations panel increases funding, approves independent funding for IG's office, 624
– – Legislative action

See LEGISLATION, FEDERAL, HR 3170, S 1432

– Collateralized mortgage obligations (CMOs), FINRA and SEC file fraud charges (S.D. Fla.), 550
– Confidence in agency, Aguilar urges policy role for retail investors, 165
– Credit crisis response criticized, 75
– Disclosure

– – Interpretations updated by Corp. Fin. staff, 852
– – Reporter's presence at otherwise nonpublic meeting does not render it public for SEC Reg. FD purposes, 768
– – SEC preparing broad package of corporate disclosures for consideration by Congress, 520

– EDGAR filer manual system updated, 405
– Efficiency, Chamber of Commerce report suggesting improvements finds support with ex-commissioners, 170
– Enforcement actions

– – Attorneys

See ATTORNEYS

– – Audit report on failure to uncover Madoff Ponzi scheme published, 858
– – Auditor liability

See AUDITOR LIABILITY

– – Backdating of stock options

See STOCK OPTION BACKDATING

– – Class actions continue at high pace, settlements up slightly, study finds, 787
– – Compliance, interpretations updated by Corp. Fin. staff, 852
– – Enforcement releases related to financial statement fraud taking longer, fraud consequences detailed, Deloitte studies show, 49
– – Financial sector companies, securities class actions targeted in 2008, PwC study finds, 370
– – Huron Consulting Group discloses SEC probe related to acquisitions, also facing class actions over false and misleading financial statements, 781
– – IG looking into possible misconduct by SEC enforcement staff, 524
– – Insider trading

See INSIDER TRADING

– – Internal control violations

See INTERNAL CONTROLS

– – Legislation

See LEGISLATION, FEDERAL, HR 1748, S 386

– – Mid-year reviews, lawyers give SEC high marks for revamp, enforcement cases up sharply, 689
– – Nature's Sunshine Products Inc., registration revoked over late filings (SEC), 144
– – Penalties

See PENALTIES

– – Pension oversight

See PENSIONS

– – Recent reports from Clearinghouse and NERA Economic Consulting chart surge in cases fueled by subprime and credit crises, 48; NERA study finds SEC settlements fell in 4th quarter, 227; NERA study finds SEC settlements jumped in 1st quarter, 370
– – Restructuring of enforcement division and continued increase in class actions likely, panelists say, 47; reorganization plan outlined by Khuzami, 765; enforcement staff under stress, working hard at effort, 860; Goldman exec, Storch named COO of Enforcement Div., 989
– – Revenue recognition improprieties

See REVENUE RECOGNITION

– – Settlements

See SETTLEMENTS

– – Subprime mortgage meltdown

See SUBPRIME MORTGAGES

– – Survey finds actions up in 3rd quarter, 999
– – TROs, increased use of raises questions of fairness and due process, 414

– Enforcement policy

– – Actions against accountants

See AUDITOR LIABILITY

– – Administration change leading to greater enforcement, ABA panelist says, 735
– – Comm'r Aguilar calls for enhanced SEC enforcement powers, including authority to bring criminal actions, 269
– – Cooperation initiatives for individuals will not hinder DOJ fraud prosecutions, officials say, 993
– – Deficiencies behind Madoff oversight addressed, SEC IG recommends corrective actions, 890
– – Environmental risk, SEC urges to clarify requirements, 711
– – Guiding principles of new enforcement chief discussed, 735
– – Hedge funds, credit default swaps, collateralized debt instruments, municipal securities, SEC likely to increase enforcement of, 395
– – Internal review under way to tighten processes, penalty guidance and enforcement manual, 410
– – Manual should be thoroughly reviewed by firms, attorney advises, 596
– – Municipal bonds, SEC proposes to increase disclosure requirements, chair asks for more power over market, 666
– – New oversight responsibilities for PCAOB

See LEGISLATION, FEDERAL, HR 1212

– – Priorities for SEC, new chief accountant discusses in BNA interview, 873 et seq.; 888
– – Procedures seen as impeding speedy enforcement dropped, Schapiro says, 162
– – Reform of securities law

– – – Legislation

See LEGISLATION, FEDERAL, HR 2873

– – – Proposed changes submitted to Congress, 684

– – Risk assessment, compliance programs high on SEC's new enforcement agenda, 501
– – Sarbanes-Oxley §404 compliance

See INTERNAL CONTROLS

– – Self-analysis will lead to more investigations, principles to guide SEC discussed by commissioner, 204
– – Settlements

See SETTLEMENTS

– – Significant changes promised, restructuring, faster investigations, proposed legislation increasing power, discussed by corporate lawyers in recent interviews, 953
– – Specialized team, other initiatives introduces to improve enforcement, GAO report recommends changes, 433; specialized units should be in place by new year, SEC official says, 889
– – Third-party confirmation of investor assets held by regulated firms, SEC plans to seek, 270

– Environmental disclosure, American Clean Energy and Security Act

See LEGISLATION, FEDERAL, HR 2454

– eXtensible Business Reporting Language (XBRL) project

See REPORTING REQUIREMENTS

– Fair value accounting impact study, staff recommends improvements but said no role found in bank failures, 17
– Fair value legislative action

See LEGISLATION, FEDERAL, HR 607, HR 1909

– Fee rate remain unchanged through end of Oct., 910
– Fee rates for FY 2010, advisory issued, 436
– Financial crisis

See FINANCIAL CRISIS

– Financial restatement calendar

See FINANCIAL RESTATEMENTS

– Financial system reform

See FINANCIAL SYSTEM REFORM

– Foreign private issuers, BNA issues new portfolio on SEC reporting issues, 741
– Funding increases sought for FY 2010, 2011, 524
– Inspection program being revised in light of Madoff scandal to improve inspection of investment advisers, hedge funds and broker-dealers possible prone to fraud, 587
– Internal controls, deficiencies could cause errors in SEC financial statements, GAO report finds, 357
– Investigations, backdating of stock options

See SHARE-BASED COMPENSATION

– Investor Advisory Comm., first meeting held, call for clear definition of fiduciary duty, 732; 4 industry groups ask SEC not to precisely define duty, 780
– Leverage ratios, supervision of broker-dealers including oversight of ratios defended by SEC official, 356
– PCAOB oversight

See PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD (PCAOB)

– Private capital, SEC given limited oversight in administration proposal detailed in white paper, 570
– Procurement and contract recordkeeping shortfalls in SEC Office of Acquisitions identified by independent audit, 932
– Promoting Transparency in Financial Reporting Act

See LEGISLATION, FEDERAL, HR 2664

– Proxies

See PROXIES

– Regulation D process should be reviewed and improved by Div. of Corp. Fin., IG says, 354
– Regulatory reform

– – Schapiro warns Congress not to create “monolithic” regulator, defends FASB's fair value rules in testimony before Congress, 319
– – Single capital markets regulator, Aguilar urges merger of SEC, CFTC and DOL's Employee Benefits Security Admin., 521

– Roadmap to convergence

See CONVERGENCE

– Rulemaking

– – Codification project

See GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)

– – Derivatives

See DERIVATIVES

– – Disclosure

See DISCLOSURE

– – Employee benefit plans

See PENSIONS

– – Fair value FASB standard, oversight

See FAIR VALUE

– – Financial system reform

See FINANCIAL SYSTEM REFORM

– – Impairments

See IMPAIRMENTS

– – Insurance

See INSURANCE

– – Internal controls

See INTERNAL CONTROLS

– – International convergence efforts

See CONVERGENCE

– – Interpretations of 1933 and 1934 securities acts' rules issued, 115
– – Municipal securities

See MUNICIPAL BONDS

– – Mutual funds

See MUTUAL FUNDS

– – Oil and gas reserves

See OIL AND GAS

– – Proxies

See PROXIES

– – Schapiro outlines areas SEC reviewing for regulatory change, 586
– – Short sales

See SHORT SALES

– – Technical corrections to rules and forms issued by SEC to align with FASB standards on business combinations and consolidated statements, 396

– Shareholder Bill of Rights

See LEGISLATION, FEDERAL, S 1074

– Strategic plan promotes development of high quality accounting and auditing standards, move toward self-funding, draft report issued, 931
– Summary of official actions, Dec. 2008, 57; Jan. 2009, 100; 148; Feb., 185; 233; Apr., 373; May, 460; 507; June, 553; 598; July, 646; 693; Aug., 789; 821; Sept., 864; Oct., 958; Oct., 1002
– Transparent agency-wide restructuring urged by Maffei (D-NY) and Arcuri (D-NY), 162
– XBRL

See REPORTING REQUIREMENTS

SECURITIES DEALERS

See BROKER-DEALERS

SECURITIES FRAUD

See also FRAUD; SECURITIES AND EXCHANGE COMMISSION (SEC), subheading: Enforcement policy
– Aiders and abettors, liability for

See LEGISLATION, FEDERAL, S 1551

– Backdating stock options

See STOCK OPTION BACKDATING

– BISYS investors securities fraud suit, PwC may not be re-included as defendant, no abuse of discretion found (2d Cir.), 95
– Budget proposal for 2010 seeks increase of 7 percent, largely for enforcement, 435
– Class actions

See CLASS ACTIONS

– Collins & Aikman ex-execs, charges dropped by Justice, SEC civil case still in play (S.D.N.Y.), 98; court orders SEC to obey document request in civil case, 145
– Cooperation initiatives by SEC for individuals will not hinder DOJ fraud prosecutions, officials say, 993
– Cross-border fraud, IOSCO announces new signatories to MOU to aid enforcement of market fraud, 318
– Enforcement increased

See LEGISLATION, FEDERAL, HR 1748, S 386

– Ex-Stanford Group CFO pleads guilty over role in alleged Ponzi scheme, agrees to cooperate in ongoing investigation (S.D. Tex.), 820
– Financial Crisis Comm'n, created by new anti-fraud law, designed to study causes and recommend steps to prevent recurrence of crisis, 547
– Geotec Inc., synthetic fuel producer and officials face civil charges over false filings and accounting irregularities (S.D. Fla.), 642
– Insider trading

See INSIDER TRADING

– Inspection program being revised by SEC in light of Madoff scandal to improve inspection of investment advisers, hedge funds and broker-dealers possible prone to fraud, 587
– Investigations by FBI continue to increase, 495
– Madoff Ponzi scheme

– – Bankruptcy proceedings against Madoff firm continue, additional prosecutions possible, 642
– – CPA sued by SEC and DOJ over audits, charged with securities fraud for not conducting legitimate audits (S.D.N.Y.), 272; aiding and abetting investment adviser fraud, securities fraud, filing false reports, additional charges filed, 680
– – Deficiencies behind Madoff oversight addressed, SEC IG recommends corrective actions, 890
– – Inquiry under way into SEC failures in light of, 21; lawmakers, whistleblower, pummel regulators over flawed handling at House panel hearing, 141
– – Madoff pleads guilty to 11 counts, faces possible 150-year sentence (S.D.N.Y.), 278; sentenced to 150 years, 642
– – SEC permanently bars Madoff from security industry participation (SEC), 597
– – SEC publishes full audit report on failure to uncover scheme, 858

– Peregrine Sys. “parking” fraud, KPMG not liable over alleged scheme (9th Cir.), 137
– Ponzi schemes, internal review by SEC of enforcement procedures under way, 410
– President's Corporate Fraud Task Force expanded, 39
– Priceline investors' securities fraud claims against auditor dismissed for failure to sufficiently allege scienter (2d Cir.), 540
– Refco

– – Ex-lawyer criminally indicted on securities fraud, false filings with SEC, wire and bank fraud, faces 100 years in prison (S.D.N.Y.), 55
– – Litigation trustee lacks standing to sue investment banks, law and accounting firms, and others who allegedly assisted ex-execs' fraud (S.D.N.Y.), 445
– – Primary liability elements misread by lower court in Refco investor suit, SEC argues in amicus brief (2d. Cir.), 783

– Revenue overstatement

See OVERSTATEMENT OF REVENUE

– Settlements

See SETTLEMENTS

– Software CEO sued by SEC for claiming fake licensing agreements in revenue recognition scam (M.D. Fla.), 956
– Stanford, inspector general clears SEC probe of alleged certificate of deposit fraud and Ponzi scheme, history of investigation detailed, 740
– Survey finds enforcement actions up in 3rd quarter, 999

SECURITIES MARKETS

See also CAPITAL MARKETS; FINANCIAL CRISIS
– Financial system reform

– – Challenges to accounting and financial regulation continue to grow, GAO report shows, 140
– – Critical flaws in regulatory system warrant significant reform, GAO declares, 98
– – New regulatory framework must heed evolution of markets, SEC official tells ABA, 778
– – SEC Comm'r Paredes says systemic risk regulator should not be allowed to override existing securities laws, 435
– – Systemic risk should be immediate focus, Dodd (D-Conn) and Volcker say, 119

– Municipal bonds

See MUNICIPAL BONDS

– OTC and securitization markets face new supervision under administration proposal detailed in white paper, 570; analysis of plan, 609; regulation proposals submitted to Congress, 682
– Ownership shift from retail to institutions, consequences need study, SEC Comm'r Aguilar says, 165
– SEC interpretations of 1933 and 1934 securities acts' rules issued, 115
– Subprime crisis

See SUBPRIME MORTGAGES

SECURITIZATIONS

See also CONSOLIDATIONS
– Financial instrument accounting, securitization structures suggest more IASB/FASB divergence areas, 570
– Markets face new supervision under administration proposal detailed in white paper, 570; analysis of plan, 609; regulation proposals submitted to Congress, 682
– Mortgages

See MORTGAGE SECURITIZATIONS

– Subprime crisis

See SUBPRIME MORTGAGES

SELF-DEALING

See generally SECURITIES FRAUD

SENTENCING

– American Italian Pasta Co., ex-execs sentenced to prison in conspiracy to overstate earnings and deceive investors (W.D. Mo.), 1001
– Brocade Communications backdating scheme, ex-CEO, Reyes' conviction overturned due to prosecutorial misconduct (9th Cir.), 782
– Ex-AIG official sentenced to 4 years in prison for role in revenue inflation scheme (D. Conn.), 145
– Ex-Gen Re exec sentenced to 2 years in prison for role in revenue inflation scheme (D. Conn.), 55; ex-CFO sentenced to 18 months and supervised release, 372
– Gen Re former exec sentenced in AIG revenue inflation scheme, free on bail pending appeal (D. Conn.), 458
– GlobeTel Communications Inc., ex-CFO sentenced to prison for failure to report stock compensation (S.D. Fla.), 459
– Madoff sentenced to 150 years (S.D.N.Y.), 642
– PurchasePro.com, ex-exec convicted in revenue inflation scheme, SEC proposed sanctions denied (D.D.C.), 183
– Tax evasion, KPMG ex-executives and lawyer sentenced to prison (S.D.N.Y.), 371

SETTLEMENTS

– AIG ex-CEO agrees to pay $15 million to settle SEC improper accounting and revenue inflation claims (S.D.N.Y.), 786
– Akai Holdings, E&Y settles negligence suit in Hong Kong bankruptcy case, suspends partner, 914
– American Commercial Lines Inc., ex-CFO settles charges of selective disclosure of inside information in violation of Reg. FD, agrees to penalties and bar (S.D. Ind., SEC), 918
– Ameriprise reaches settlement with SEC over alleged revenue -sharing scheme with REITs (SEC), 690
– Apogee Tech. and ex-execs settle SEC earnings inflation scheme charges (D. Mass.), 506
– AstroPower Inc., solar electric power products firm, ex-execs settle revenue recognition scheme charges, agree to civil penalties (D.D.C.), 282
– Bank of America shareholder pre-merger disclosures about bonuses to Merrill Lynch executives, settlement reached with SEC (S.D.N.Y.), 737; pending settlement signals growing investor influence on executive compensation, attorneys say, 785; settlement rejected for second time citing lack of charges against individuals (S.D.N.Y.), 818; court rejects proposed settlement, 857; analysis of court rejection, 886; BoA agrees to waive attorney-client privilege, disclose proxy information to N.Y. attorney-general and regulators, 954; SEC's amended complaint repeats allegations, adds one claim (S.D.N.Y.), 1000
– BDO Seidman

– – Ex-partner pleads guilty to tax shelter fraud and conspiracy charges (S.D.N.Y.), 681
– – Vice chairman pleaded guilty to conspiring to defraud U.S. in tax shelter transactions (S.D.N.Y.), 273

– Cardinal Health., ex-execs settle SEC revenue inflation scheme charges involving disguised bulk sales (S.D.N.Y.), 505
– Clancy and Co. PLLC, PCAOB imposes sanctions for violations of auditing rules and standards, 365
– Class actions continue at high pace, settlements up slightly, study of SEC enforcement finds, 787
– Computer technology distribution firm agrees to settle internal control charges related to SEC revenue inflation investigation of McAfee (SEC), 456
– Delphi Corp., ex-exec settles charges on fraud scheme participation (E.D. Mich.), 328
– Ex-Stanford Group CFO pleads guilty over role in alleged Ponzi scheme, agrees to cooperate in ongoing investigation (S.D. Tex.), 820
– GE settles SEC accounting charges of misleading financial statements, pays $50 million penalty (D.Conn.), 738
– Gen Re, settlement reached for Ohio pension funds in AIG insurance fraud case (S.D.N.Y.), 231
– GlobeTel Communications Inc., ex-CPA admits not reporting stock compensation paid to corporate officers (S.D. Fla.), 146
– GM settles SEC accounting charges of misstatement of pensions and other reporting and internal control data (D.D.C.), 143
– HealthSouth Corp., $109 million settlement against auditor, E&Y, approved by court (N.D. Ala.), 322
– Hedge fund adviser settles disclosure charges over Mylan investment prior to merger (SEC), 738
– Krispy Kreme, ex-finance officer settle SEC charges over misstated earnings re incentive plan accounting and round-trip transactions over franchise reacquisitions, 229
– Las Vegas CPA settles SEC and PCAOB charges of allowing high school grads to prepare audit reports (D. Nev.), 813
– Monster Worldwide, firm to pay $2.5 million to settle SEC charges (S.D.N.Y.), 505
– Mortgage firm, SEC charges ex-execs with accounting fraud, ex-CEO settles (S.D.N.Y.), 416
– Mutual funds, Evergreen family of funds agree to pay over $40 million to settle SEC and Mass. charges of inflating value (SEC), 549
– NERA study finds SEC settlements fell in 4th quarter, 227; study finds SEC settlements jumped in 1st quarter, 370
– Penalties in, pilot SEC approval program ended by Shapiro, staff now can negotiate settlement and then seek SEC approval, 243 et seq.; SEC staff still guided by 2006 statement, 860
– PowerCold Corp., and execs settle charges involving improper revenue recognition practices, agree to sanctions (W.D. Tex.), 281
– PricewaterhouseCoopers and Bermuda affiliate settle N.J. lawsuit alleging fraud and accounting improprieties at Tyco over losses in pension funds (D.N.H.), 274
– Stock option backdating

See STOCK OPTION BACKDATING

– Swiss insurers settle SEC charges over financial fraud scheme over reinsurance transactions (S.D.N.Y., SEC), 53
– Terex Corp., heavy equipment manufacturer agrees to pay SEC penalty settling charges of abetting accounting fraud (D. Conn.), 788
– Tyco Intl. ex-execs settle SEC financial fraud and securities law violation claims (S.D.N.Y.), 692
– United Rentals Inc., ex-CFO pleads guilty to conspiracy, reaches multi-million dollar settlement on civil fraud charges of misstating financials with SEC (D. Conn.), 1001
– VeriFone Holdings finance employee agrees to fine for helping firm overstate income (N.D. Cal.), 820; 861

SHARE-BASED COMPENSATION

– Backdating of stock options

See STOCK OPTION BACKDATING

– Corporate human resource systems will need to change if IFRS adopted, PwC panel discussion, 181
– Earnings per share

– – Analysts comment on IASB exposure draft, express indifference, 220; project put on hold pending year-end review, 403
– – Distributions to shareholders with components of stock and cash in calculation and presentation of earnings per share, exposure document to be issued soon by EITF, 846

– – – draft ASU published for comment by FASB, 891
– – – ASU update issued by FASB, 892

– IASB clears changes to IFRS 2 preferred accounting treatment of group cash-settled, share-based payments, 36; staff cleared to publish final amended standard, 402; final amendments published, 625; vesting vs. nonvesting conditions, further research by staff into preparers' confusion ordered, 671

SHAREHOLDERS

– Bill of rights

See LEGISLATION, FEDERAL, S 1074

– Climate change shareholder resolutions increase, 817
– Proxy access

See PROXIES

– Suits by

See generally DERIVATIVE ACTIONS

SHORT SALES

– Limitations on, SEC to consider proposals, 356; investor protections considered, 449

SMALL BUSINESSES

– AICPA technical group urges FASB to not cede to IASB authority over private company accounting, 950
– Data breach prevention toolkit for small and medium-sized businesses published by Canadian accountants group, 861
– IASB standard for small and medium businesses

See PRIVATE COMPANIES

– SEC small business capital formation forum agenda announced, 988
– SOX §404 internal controls provisions

See INTERNAL CONTROLS

SOFTWARE FIRMS

– Cadence Design Sys., class action suit over improper revenue recognition by software design firm tossed for failure to adequately plead scienter (N.D. Cal.), 918
– Ex-CEO of failed software firm sued by SEC for claiming fake licensing agreements in revenue recognition scam (M.D. Fla.), 956
– Quest Software and execs settle SEC backdating allegations, agree to sanctions (SEC), 281
– Software firm settles SEC charges of defrauding investors by secret stock backdating scheme (S.D.N.Y.), 328

SOUTH KOREA

– Convergence, accounting equivalence granted by EU to GAAP used in Japan, 38

SPECIAL PURPOSE ENTITIES (SPEs)

– Bankers predict end of securitization as business, as result of new FASB rules requiring greater capitalization, 916
– FASB to continue same course on planned changes to FAS 140 and FIN 46(R), 27; progress made, 121; sale accounting criteria tightened, staff recommendation endorsed, 208; shared power, kick-out right provisions in consolidations fine-tuned, 260; final rules expected by June, continuing progress detailed, 350; U.S. Chamber of Commerce urges delaying effective date, says changes may exacerbate problems, 545; new guidance issued, 573; new guidance likely to balloon balance sheets, Credit Suisse analysis shows, 594; SEC actively watching for firms skirting off-balance sheet rules, 623; webcast scheduled to discuss amendments, 773; webcast discusses specifics as determining if securitizations recorded as borrowing, 810; FASB asks for comments on asset-consolidation rules, 811; SEC expresses continued concern about adoption of FAS 167, 840; implementation guidance needed, analysts say, 967; banks concerned about capital requirements in response to asset consolidation changes, 997
– Variable interest entities (VIEs), new guidance requires robust disclosure of assets transfers and VIEs, 26; progress made, 121; sale accounting criteria tightened, staff recommendation endorsed, 208; shared power, kick-out right provisions in consolidations fine-tuned, 260; final rules expected by June, continuing progress detailed, 350; implementation guidance needed, analysts say, 967

STANDING

– Auditor liability, litigation increase in light of subprime crisis, defending auditors at pleading stage, analysis and perspective, 757
– Refco, litigation trustee lacks standing to sue investment banks, law and accounting firms, and others who allegedly assisted ex-execs' fraud (S.D.N.Y.), 445

STATE AND LOCAL GOVERNMENTS

– Bonds

See MUNICIPAL BONDS

– GASB

See GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB)

– Pension plan disclosure requirements

See PENSIONS

STATE AND LOCAL TAXES

– Convergence

– – Broad impact on states and taxpayers, Big Four firms warn companies to perform tax analysis for federal and state income taxes, 45
– – Multistate Tax Comm'n plans examination of impact of switch to IFRS, 92

STIMULUS

See ECONOMIC STIMULUS

STOCK OPTION BACKDATING

– BlackBerry maker, 4 execs settle SEC charges, penalties assessed (D.D.C.), 182
– Broadcom's ex-CFO's statements to outside counsel in internal review of stock backdating scheme not privileged (9th Cir.), 955
– Brocade Communications backdating scheme, ex-CEO, Reyes' conviction overturned due to prosecutorial misconduct (9th Cir.), 782
– Engineered Support, backdating claims against father and son may continue (E.D. Mo.), 51
– Ex-McAfee general counsel, SEC drops suit against, dismissed with prejudice (N.D. Cal.), 328
– KB Home

– – Ex-CEO indicted in alleged multi-year stock backdating scheme (C.D. Cal.), 280
– – Ex-VP and head of human resources pleaded guilty to conspiring to obstruct justice in internal investigation into multi-year stock backdating scheme (C.D. Cal.), 280

– Monster Worldwide

– – Ex-exec convicted on conspiracy and securities fraud charges in option backdating case (S.D.N.Y.), 457
– – Firm to pay $2.5 million to settle SEC charges (S.D.N.Y.), 505

– Pediatrix Medical Group settles SEC charges of backdating employee stock options, failure to recognize compensation expense caused overstatement of income (S.D. Fla.), 280
– Quest Software and execs settle SEC backdating allegations, agree to sanctions (SEC), 281
– Take-Two, software firm settles SEC charges of defrauding investors by secret backdating scheme (S.D.N.Y.), 328; separately settles N.Y. charges, 328; 2 ex-officers of Take-Two settle related charges (S.D.N.Y.), 739
– UnitedHealth Group Inc. and ex-lawyer settle stock option backdating scheme charges (D. Minn.), 54

STOCK OPTIONS

See SHARE-BASED COMPENSATION

STOCK PRICE MANIPULATION

See REVENUE RECOGNITION

STOCK REDEMPTIONS

See REDEMPTIONS OF CORPORATE STOCK

SUBPRIME MORTGAGES

– Auditor liability, litigation increase in light of subprime crisis, defending auditors at pleading stage, analysis and perspective, 753 et seq.
– Countrywide Fin. Corp., fraud charges brought by SEC against ex-officers for excessive subprime risks (C.D. Cal.), 548
– Fair value

See FAIR VALUE

– Financial crisis

See FINANCIAL CRISIS

– Fraud investigations by FBI continue to increase, 495
– New Century

– – Bankruptcy trustees sue KPMG over bad audits, KPMG disputes allegations (Cal. Super.Ct., S.D.N.Y), 321
– – KPMG faulted for role in collapse of mortgage company, investor class action allowed to continue (C.D. Cal.), 50

– QSPEs

See SPECIAL PURPOSE ENTITIES (SPEs)

SUBSEQUENT EVENTS

– FASB begins final drafting of accounting guide, 168; FASB issues FAS 165, new standard on subsequent events, 526

SUBSIDIARIES

– Foreign subsidiary investments, IFRIC issues proposed guidance removing holding restriction, 123
– Investments in, income tax accounting under IFRS, overview, SplRpt (6/26/09)
– Transfers of interest of consolidated subsidiary, EITF Issue No. 08-10 ratified by FASB, EITF discussed but did not resolve outstanding issues, 89

SUPREME COURT, U.S.

– Auditor regulation, constitutionality of PCAOB, challenge to (rev grant), 496; Olson resignation not related to, 539; argument scheduled, 944; CII files amicus curiae brief supporting PCAOB, 989
– CPA not entitled to whistleblower protection, no basis for claim of stock fraud so not covered under SOX protections (rev den), 416
– Enron, ex-exec convicted of financial fraud, appeal granted on constitutionality of “honest services” statute and jury bias issue (rev grant), 951

SWITZERLAND

– Mutual audit inspection recognition agreement with E.U. likely, 854

SYSTEMIC RISK

See generally RISK ASSESSMENT