The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving,...
Dec. 5 — Deficiencies in companies’ internal controls over their financial reporting can lead to restatements and higher investment costs, the SEC’s top accountant warned.
Wesley Bricker, the Securities and Exchange Commission’s chief accountant, said Dec. 5 that over the next several years, updating and maintaining sound internal controls over financial reporting “will be particularly important” as major new accounting standards take effect.
Revenue reporting rules that the Financial Accounting Standards Board released in 2014 become effective for public companies in 2018. In succeeding years, companies will shift to new FASB standards on leases and accounting for loan and other credit losses.
Bricker, who spoke at a conference of the American Institute of CPAs, joined other SEC officials and leaders of the Public Company Accounting Oversight in focusing at least briefly on internal controls, or ICFR, at the event.
“It is hard to think of an area more important than ICFR to our mission of providing high-quality financial information that investors can rely on,” Bricker said. Companies’ efforts to apply new rules “will require careful planning and execution, as well as sound judgment from management,” he said.
To contact the reporter on this story: Steve Burkholder in Washington at email@example.com
To contact the editor responsible for this story: S. Ali Sartipzadeh at firstname.lastname@example.org
The text of Bricker’s speech is available at https://www.sec.gov/news/speech/keynote-address-2016-aicpa-conference-working-together.html
Copyright © 2016 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)