Current SEC initiatives in accounting and disclosure
03 Jul 2002
In a Speech before the Economic Club of New York, SEC Chairman Harvey L.
Pitt summarised the Commission's key initiatives in the area of accounting and disclosure as follows:
- A proposed framework for oversight of the accounting profession
- CEO and CFO certification of financial statements
- Actively assisting FASB in retaining its independence and addressing key issues on a more timely basis and in a way that will better adapt to changing business environments and emphasise overall accuracy
- Requiring companies to discuss the effects of their critical accounting policies
- Reminders to companies to disclose off-balance sheet financing arrangements, and about the appropriate use of, and limitations on, pro forma financial information
- Enforcement actions underscoring that technical compliance with GAAP, without more, can still produce insufficient disclosure
- Accelerated reporting of insider transactions, including company loans
- Tripling the number of items that companies must report currently, and to accelerate those disclosures
- Accelerating the deadline for annual reports from 90 to 60 days, and quarterly reports from 45 to 30 days.