|
Developments
|
 Stock
option timing
SEC
Staff Accounting Bulletin 108 Sept 2006
- Interpretive guidance on how the effects of the
carryover or reversal of prior year misstatements should be considered in
quantifying a current year misstatement
GAO
Report July 2006
- Investigate noncompliance with Form 8-K
requirements
- Give consistent guidance about required
disclosures regarding certain restatements
|
Recent Restatements
|
 Nortel
Networks
Telephone
and Data Systems
- Restates 2000-2005 over variety of errors
- Subject of SEC investigation
General
Motors
- Restates 2001 over supplier credits
- Affects timing of recognition
- May also affect other periods
- Subject of SEC investigation
American
International Group (AIG)
- Restates 2000-2005 over derivatives
- Insufficient documentation to support hedge
accounting
Eastman
Kodak
- Restates 1Q and 2Q 2005 over non-cash accounting
errors
- Restructuring accruals associated with severance
and special pension-related termination benefits
JetBlue
Airways
Sun
Microsystems
- Restates 2003-2005 over deferred foreign taxes
- Form 10-K
9.13.05
ACE
Ltd
Knight
Capital Group
Macromedia
- Restates financials for 1999-2005
- Over employee sabbatical leave program
-
Adobe sued
by shareholders for failure to act
on Macromedia restatement 
Ligand
Pharmaceuticals
Wyndham
International
- Hotel chain restates over taxes and other issues
- 2004 loss of $4.01 per share restated to $4.03
- Form 8-K
5.17.05
AIG
Doral
Financial
ConAgra
Foods
MBIA
Delphi
|
Lease Accounting Issues
|
Rash
of restatements in 2004 -2005
- Follows focus of major accounting firms and SEC
on amortization of leasehold improvements and related issues
-
Accounting
for Leases
|
Disclosure Requirement
Recent Restatements
|
Nortel
Networks
Telephone
and Data Systems
- Restates 2000-2005 over variety of errors
- Subject of SEC investigation
General
Motors
- Restates 2001 over supplier credits
- Affects timing of recognition
- May also affect other periods
- Subject of SEC investigation
American
International Group (AIG)
- Restates 2000-2005 over derivatives
- Insufficient documentation to support hedge
accounting
Eastman
Kodak
SEC_CODE_REF_0090001192884
- Restates 1Q and 2Q 2005 over non-cash accounting
errors
- Restructuring accruals associated with severance
and special pension-related termination benefits
JetBlue
Airways
Sun
Microsystems
- Restates 2003-2005 over deferred foreign taxes
- Form 10-K
9.13.05
ACE
Ltd
Knight
Capital Group
Macromedia
- Restates financials for 1999-2005
- Over employee sabbatical leave program
-
Adobe sued
by shareholders for failure to act
on Macromedia restatement
Ligand
Pharmaceuticals
Wyndham
International
- Hotel chain restates over taxes and other issues
- 2004 loss of $4.01 per share restated to $4.03
- Form 8-K
5.17.05
AIG
Doral
Financial
ConAgra
Foods
MBIA
Delphi
|
Shareholder Litigation
|
ConAgra
Foods
AIG
- AIG had several operating and accounting issues
including errors over derivative accounting (FASB 133)
which required restating prior period financials
- Restatement announced
5.01.05
- Form 8-K
5.01.05
-
Stock chart
Doral
Financial
- Mortgage company used actual 90-day LIBOR rates
instead of the customary forward LIBOR curve
to value its floating rate interest only ("IO") strips
-
Restatement announced 4.19.05
-
Complaint
- Faverman SDNY 4.20.05
- Several other complaints have been filed
-
Stock chart
MBIA
Delphi
|
Sarbanes-Oxley Act § 304
|
Statute
- Provides for forfeiture of certain bonuses and
profits by CEOs and CFOs when a restatement is required due to an issuer's
noncompliance with any financial reporting requirements of the securities law,
if the noncompliance arises from misconduct
Neer
v Pelino (ED PA 2005)
|
Commentary
|
Law
firms
|
Related Topics
|
