On March 3, 2011, the SEC filed an action against the president and chief executive officer of a company, seeking to recover bonuses and other incentive-based and equity-based compensation and stock sale profits received while the company was committing accounting fraud.
On March 7, 2011, the SEC's Office of the Chief Accountant and Division of Corporate Finance jointly issued Staff Accounting Bulletin (SAB) Number 114, which revises or rescinds portions of the interpretative guidance included in the codification of the SAB Series.
At a recent New York Bar Association conference, Wayne Carnall, Chief Accountant of the SEC's Division of Corporation Finance, warned registrants to avoid relying on the long-standing ABA-auditor "treaty" between lawyers and auditors when deciding what to report about litigation contingencies in financial statements.
On January 14, 2011, the Division of Corporation Finance issued new CDIs regarding change of accountants.
On December 20, 2010, the PCAOB issued Staff Audit Practice Alert No. 7, Auditor Considerations of Litigation and Other Contingencies Arising From Mortgage and Other Loan Activities, to advise auditors that the potential risks and costs associated with mortgage and foreclosure-related activities or exposures could have implications for audits of financial statements or of internal control over financial reporting.
On December 2, 2010, the SEC posted to its website an updated version of its "SEC Staff Review of Common Financial Reporting Issues Facing Smaller Issuers."
On October 6, 2010, the Financial Accounting Standards Board (FASB) proposed two critical changes to the way companies test for impairment of goodwill as part of an accounting standards update on Topic 350.
On July 7, 2010, the SEC's Division of Corporation Finance published a revised Financial Reporting Manual.
On June 24, 2010, the International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards Board (FASB) published for public comment a draft standard to improve and align the financial reporting of revenue from contracts with customers and related costs.
In a 5-4 decision, the U.S. Supreme Court rejected an attempt to declare unconstitutional the Public Company Accounting Oversight Board a private, nonprofit organization created in the wake of Enron and WorldCom accounting scandals.