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June

Study finds 'crisis of confidence' on Wall Street

15 Jun 2002

An analysis of buy, sell, and hold ratings published for 19 listed companies that went bankrupt in the first four months of 2002 by 50 investment banking and brokerage firms found that "94% of the 50 firms continued to recommend that investors should buy or hold shares in failing companies right up to the day these companies filed for bankruptcy".

The study concluded: "Investors lack the single most important element they need to help cut through much of the distortions and dislocations discussed in this paper: Clear, full, disclosure of accurate, unbiased, comparable information." Click for Full Study (PDF 250k).

IASB will meet next week

14 Jun 2002

The IASB will meet in Berlin for three days starting Monday 17 June.

On the agenda are: The Board will meet with its Advisory Council on 20-21 June and will hold a public Seminar on share-based payment on 18 June.

Some facts about the last 150,000 visitors to IASPlus.com

13 Jun 2002

Which browser? Which operating system? Internet Explorer 5 74.5% Windows 98 42.2% Internet Explorer 6 12.5% Windows 2000 25.4% Internet Explorer 4 4.5% Windows NT 19.0% Internet Explorer 2 0.8% Windows 95 9.2% Total Internet Explorer 92.3% Windows XP 2.4% Netscape 4 5.7% Total Windows 98.2% Netscape 3 1.2% Macintosh 0.4% Netscape 6 0.6% Others 1.5% Total Netscape 7.8% Total Non-Windows 1.9% .

Which browser?

Which operating system?

Internet Explorer 5

74.5%

Windows 98

42.2%

Internet Explorer 6

12.5%

Windows 2000

25.4%

Internet Explorer 4

4.5%

Windows NT

19.0%

Internet Explorer 2

0.8%

Windows 95

9.2%

Total Internet Explorer

92.3%

Windows XP

2.4%

Netscape 4

5.7%

Total Windows

98.2%

Netscape 3

1.2%

Macintosh

0.4%

Netscape 6

0.6%

Others

1.5%

Total Netscape

7.8%

Total Non-Windows

1.9%

SEC proposes rules 'to enhance investor confidence'

13 Jun 2002

The US SEC is proposing to require, for domestic companies, that: The principal executive and financial officers certify the contents of the company's quarterly and annual reports. Certain new events be reported on Form 8-K, including unusual agreements, terminations of business relationships, contingent obligations, restructurings, write-offs, impairments, rating changes, withdrawals of auditors' reports, and changes in directors and management. Form 8-K reports be filed within two business days instead of the current 5 to 15 days. Click for SEC Press Release. .

The US SEC is proposing to require, for domestic companies, that:

  • The principal executive and financial officers certify the contents of the company's quarterly and annual reports.
  • Certain new events be reported on Form 8-K, including unusual agreements, terminations of business relationships, contingent obligations, restructurings, write-offs, impairments, rating changes, withdrawals of auditors' reports, and changes in directors and management.
  • Form 8-K reports be filed within two business days instead of the current 5 to 15 days.
Click for SEC Press Release.

EFRAG begins its review of existing IAS

12 Jun 2002

The new European Accounting Regulation requires that the European Commission "decide on the applicability within the Community" of both existing and future International Accounting Standards.

The regulation establishes an Accounting Regulatory Committee to advise the Commission in this regard and sets a deadline of 31 December 2002 for decisions regarding existing IAS. Under the regulation, IAS can only be adopted if they
  • (a) are not contrary to EU Directives,
  • (b) are conducive to the European public good, and
  • (c) meet the criteria of understandability, relevance, reliability, and comparability.
The regulation requires that the Commission consider the views of national accounting standard setters; securities, banking and insurance regulators; central banks including the ECB; the accounting profession; and users and preparers of accounts. The private sector accounting profession in Europe has created an organisation called the European Financial Reporting Advisory Council (EFRAG) to present coordinated views to the Accounting Regulatory Committee and the Commission. EFRAG has begun its task of reviewing the existing IAS with regard to their applicability in Europe. Click for EFRAG Press Release (PDF 21k).

New Accounting Roundup newsletter posted

11 Jun 2002

We have posted the 10 June 2002 edition of the Accounting Roundup newsletter from Deloitte & Touche USA. .

We have posted the 10 June 2002 edition of the Accounting Roundup newsletter from Deloitte & Touche USA.

IASC Foundation trustees will meet tomorrow

11 Jun 2002

The board of trustees of the IASC Foundation will hold an open meeting at the IASB office in London on 12 June 2002. The public session is 08:30-10:30. Agenda topics: Report of the IASB Chairman Proposed Revision of the Constitution Future of IASC Foundation funding .

The board of trustees of the IASC Foundation will hold an open meeting at the IASB office in London on 12 June 2002. The public session is 08:30-10:30. Agenda topics:

  • Report of the IASB Chairman
  • Proposed Revision of the Constitution
  • Future of IASC Foundation funding

NASDAQ proposes corporate governance changes

09 Jun 2002

The 4,000 companies listed on the NASDAQ Stock Market in the USA would be subject to corporate governance reforms similar to those proposed by the New York Stock Exchange (see 7 June 2002 news item). .

The 4,000 companies listed on the NASDAQ Stock Market in the USA would be subject to corporate governance reforms similar to those proposed by the New York Stock Exchange (see 7 June 2002 news item).

Europe adopts regulation requiring IAS by 2005

08 Jun 2002

The Council of the European Union has adopted an IAS Regulation requiring listed companies, including banks and insurance companies, to prepare their consolidated accounts in accordance with International Accounting Standards (IAS) from 2005 onwards.

Member States may defer application until 2007 for those companies that are listed both in the EU and elsewhere and that currently use US GAAP (or other GAAP) as their primary basis of accounting, as well as for companies that have only publicly traded debt securities. The goal of the Regulation is to eliminate barriers to cross-border trading in securities by ensuring that company accounts throughout the EU are reliable, transparent, and comparable. The Regulation has the force of law without requiring transposition into national legislation. However, "to ensure appropriate political oversight", the Regulation establishes a new EU mechanism to "assess IAS to give them legal endorsement" before they can be used in Europe. Member States have the option of extending the requirements of the Regulation to unlisted companies and to the production of individual accounts.

 

NY Stock Exchange proposes sweeping corporate governance reforms

07 Jun 2002

The Corporate Accountability and Listing Standards Committee of the NYSE Board of Directors has recommended new standards and changes in corporate governance and practices of NYSE-listed companies.

The report asks that the SEC to "exercise more active oversight of the FASB to improve the quality of GAAP and the speed of FASB actions". The committee also makes recommendations to Congress and the SEC on various policy and regulatory matters. The proposals seek to strengthen issuer accountability, integrity, and transparency. Click for:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.