The Financial Accounting Standards Board has issued rules that provide financial-statement preparers an option to reclassify stranded tax effects within accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act.
Health care spending is expected to increase an average of 5.5% yearly through 2026, reaching almost $5.7 trillion, according to the Department of Health and Human Services. Prices of prescription drugs are expected to increase fastest at 6.3% annually.
The Committee of Sponsoring Organizations of the Treadway Commission has introduced draft guidance for addressing environmental, social and governance risks. The guidance, which COSO developed with the World Business Council for Sustainable Development, is a supplement to the Enterprise Risk Management -- Integrating With Strategy and Performance framework released last year.
Governance risk and compliance has been a focus for many companies in the last year as they prepared for such regulations as General Data Protection Regulation and MiFID II, battled against cyberthreats and grappled with increasing extraterritorial regulatory oversight. With resources tight, internal auditors have been increasingly called up to help identify and assess risks.
The Sarbanes-Oxley Act of 2002, Section 206, tried to eliminate the so-called alumni effect by making it illegal for accounting firms to perform audits for a company if one of its top finance executives had been employed by the auditor in the preceding year. A study has found that this one-year restriction is not effective and that a five- to 10-year "cooling-off period" may be necessary.
The compliance and risk job market is slowing as the increased investment financial firms have made in compliance in recent years comes to an end, observers say. Deregulation and new technology are factors in keeping entry-level compensation from rising and in curtailing new hiring, they say.
A strong, ethical culture requires continual attention, says NAVEX Global President and CEO Bob Conlin. Problems arise when companies treat ethics "as a check-the-box type of thing," he says.