SEC Claws Back Money from Tech CFOs for Accounting Fraud
In a settlement with the Securities and Exchange Commission, two former CFOs of a Silicon Valley technology company agreed to return nearly a half-million dollars in bonuses and stock sale profits received while the company was allegedly engaged in accounting fraud. Read the full story.
Congress Should Not Undo Progress on Financial Data Reform
Financial statements submitted to the U.S. Securities and Exchange Commission (SEC) are used by regulators and investors alike to assess risk and detect fraud, and are an important tool in promoting corporate transparency. In 2009, the SEC issued rules requiring public companies to submit financial statement information in the machine-readable eXtensible Business Reporting Language (XBRL) data format, as opposed to traditional, text-based formats like PDF or HTML. This decision had the potential to increase the speed, accuracy and utility of this data. However, company submissions were often rife with errors, frustrating investors and regulators who were unable to perform reliable, automated analysis of this information, causing some to see the practice as wasteful and unnecessary.
In response to these shortcomings, Rep. Michael Fitzpatrick (R-Pa.) introduced the Promoting Job Creation and Reducing Small Business Burdens Act in January 2015. The legislation would, among other things, exempt small companies from the XBRL reporting requirement. Read the full story.by