Tuesday, December 28, 2004
FEI Outlines Top Ten Financial Reporting Challenges for 2005
AccountingWEB.com - Financial Executives International has identified the top 10 financial reporting challenges for 2005. These challenges will impact the way companies manage their businesses, report their financial results, and compensate their employees.
The challenges include:
1.) Stock option expensing. The Financial Accounting Standards Board (FASB) has mandated that all stock compensation be expensed beginning June 30, 2005 for most public companies. Smaller public companies and private firms have until the first annual reporting period after Dec. 15, 2005.
2.) Complying with Sarbanes Oxley Section 404. The requirement for reporting on internal controls is already in place for accelerated SEC filers with years ending after November 15, 2004, but during 2005 all companies have to comply. Increasingly, lenders and state regulators are asking private companies about the status of their internal controls environment. Private companies may also see audit procedures used by their external auditor become more "integrated" with internal controls as the audit firms change their procedures.
posted by Brian Moran @ 10:46 AM