Archive

Archive for the ‘governance’ Category

PwC and Financial Executives Research Foundation (FERF) report: The New Revenue Recognition Standard: Are you Prepared for Change?

November 18, 2014 Comments off

PwC and Financial Executives Research Foundation (FERF) report: The New Revenue Recognition Standard: Are you Prepared for Change?
Source: PricewaterhouseCoopers

In this survey report, PwC and FERF teamed up to gain an understanding of where companies are relative to implementing new revenue recognition standard. While many companies do not know what the implementation journey fully looks like yet in terms of implementation processes, costs, timing, contract reviews, IT and systems, operations, quantification and reporting, they understand they should start preparing now.

The new standard, issued in May 2014, replaces nearly all existing US GAAP and IFRS guidance and will require significant management judgment – in addition to changing the way many US companies recognize revenue in their financial statements. The survey found that while a majority of companies are familiar with the new revenue recognition standard issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), they are still struggling with assessing the full impact of the change, particularly related to its implications for their financial reporting, processes and systems.

About these ads

Drivers of Corruption : A Brief Review

November 13, 2014 Comments off

Drivers of Corruption : A Brief Review
Source: World Bank

Corruption is motivated by the possibility of securing something of value for oneself and one’s allies. The desire to secure benefits is a human trait and generally positive for development; various forms of rewards drive humans to get up in the morning, do a good job, and act responsibly. The discussion now turns to the opportunity to secure more benefits than are entitled to within the existing rules of the game ; specifically, the opportunity to grab at the expense of society. A decision maker has the authority to influence an outcome that matters to the briber. For steering a decision in the briber s direction, the decision maker is compensated with a bribe. The steered decision and the bribe now become assets that usually exceed what at least one of the players would have obtained without the corrupt act. The opportunity to seize assets through some form of power misuse differs across sectors, organizations, and decision-making situations. This chapter describes the circumstances in which the risk of corruption is particularly high in other words, where the drivers of corruption can be found.

Categories: ethics, governance, World Bank

CFR Backgrounder: The Arab League

November 11, 2014 Comments off

Backgrounder: The Arab League
Source: Council on Foreign Relations

Founded in March 1945, the League of Arab States (or Arab League) is a loose confederation of twenty-two Arab nations, including Palestine, whose broad mission is to improve coordination among its members on matters of common interest. The League was chartered in response to concerns about postwar colonial divisions of territory as well as strong opposition to the emergence of a Jewish state in Palestine, but it has long been criticized for disunity and poor governance. Critics also say it has traditionally been more representative of its various autocratic regimes than of Arab citizens.

The organization had the opportunity to advance social interests with the push for Palestinian statehood at the UN and the unrest in many Arab countries in 2011. Some critics see positive developments in the League’s actions in Libya, where it supported a no-fly zone and the ouster of Muammar al-Qaddafi, and in Syria, where it orchestrated a fact-finding mission to observe the conflict and called on President Bashar al-Assad to step down after months of deadly clashes with protesters.

The Risks of China’s Internet Companies on U.S. Stock Exchanges

October 31, 2014 Comments off

The Risks of China’s Internet Companies on U.S. Stock Exchanges
Source: U.S.-China Economic and Security Review Commission

In May 2014, Alibaba, China’s leading e-commerce website, filed for a U.S.-based initial public offering (IPO) in what is expected to be one of the largest in U.S. history. The highly anticipated IPO will be just one in a recent wave of Chinese Internet companies launching IPOs in the United States. The trend has raised some misgivings among U.S. regulators about the corporate structures of these companies. To bypass Chinese government restrictions on foreign investment in the Internet sector, Chinese Internet companies use a complex and highly risky mechanism known as a Variable Interest Entity (VIE). An addendum was added to this paper on September 12, 2014.

Compensation for U.S. Corporate Directors Increased 6%, Towers Watson 2014 Analysis Finds

October 24, 2014 Comments off

Compensation for U.S. Corporate Directors Increased 6%, Towers Watson 2014 Analysis Finds
Source: Towers Watson

Total pay for outside directors at the nation’s largest corporations increased by 6% in 2013, fueled by higher stock-based compensation, according to a new analysis by global professional services company Towers Watson (NYSE, NASDAQ: TW). The study also found that cash compensation remained flat for the first time since 2007, when proxy disclosure rules were enacted requiring companies to report actual values received by directors in summary compensation tables.

According to Towers Watson’s annual analysis of director compensation at Fortune 500 companies, median total direct compensation for directors climbed 6% last year, to nearly $240,000, up from $227,000 in 2012. The increase is double the 3% increase in director total compensation in 2012. Total compensation includes cash pay, and annual or recurring stock awards. The analysis found that the median value of cash compensation remained flat last year at $100,000, while compensation from annual and recurring stock awards increased 4%, to $130,500, the largest increase since 2011. More than half (56%) of directors’ pay in 2013 was delivered through stock compensation, up slightly from 55% in 2012.

Revealed: the companies doing the most to combat climate change

October 22, 2014 Comments off

Revealed: the companies doing the most to combat climate change
Source: CDP

A new global index based on companies that exhibit leadership through action to mitigate climate change outperforms The Bloomberg World Index by 9.6%. So finds analysis released today by CDP, an international NGO that drives sustainable economies.

The research is published in The A List: The CDP Climate Performance Leadership Index 2014, which has been created at the request of 767 investors who represent more than a third of the world’s invested capital.

Information provided by nearly 2,000 listed companies has been independently assessed against CDP’s widely-respected scoring methodology and ranked accordingly.

187 businesses from around the world, including BMW AG, Centrica, Samsung Electronics and Unilever, demonstrate a superior approach to climate change mitigation. Awarded an A grade for their performance, they earn a position on the first global ranking of corporate efforts to mitigate climate change. Collectively the climate performance leaders have reduced their total (absolute) emissions by 33 million metric tons in the past reporting year, equivalent to turning London’s car owners into cyclists for two and a half years.

CRS — Conflict Minerals and Resource Extraction: Dodd-Frank, SEC Regulations, and Legal Challenges (October 15, 2014)

October 20, 2014 Comments off

Conflict Minerals and Resource Extraction: Dodd-Frank, SEC Regulations, and Legal Challenges (PDF)
Source: Congressional Research Service (via Federation of American Scientists)

Two sections of the Dodd-Frank Wall Street Reform and Protection Act (Dodd-Frank) require that the Securities and Exchange Commission (SEC or Commission) issue regulations to make public the involvement of U.S. companies in conflict minerals and in resource extraction payments. Supporters of the Dodd-Frank conflict minerals statute and the SEC implementing rule believe that such disclosures could have an impact on the amount of violence involved with the mining of conflict minerals. Opponents of the statute and rule argue that they require disclosures that are arbitrary and capricious and that some of the required disclosures violate the First Amendment guarantee of freedom of speech. Supporters of the resource extraction statute and the SEC implementing rule believe that they are needed to achieve the goal of the transparency of payments made by resource extraction issuers to governments in order to foster reform and anticorruption and to improve the tax collection process. Opponents believe that they are arbitrary and capricious and violate the First Amendment. Legal challenges to the statutes and regulations have occurred, based primarily on administrative law and First Amendment grounds.

Follow

Get every new post delivered to your Inbox.

Join 958 other followers