Governance IssuesTM
Volume 2022, No. 3
October 25, 2022
In This Issue
Lots to cover in this edition starting with questions directors and executives should be asking about their data privacy governance. Next is a summary of ASC 250 for addressing accounting changes and error corrections. We conclude with new executive compensation disclosures for public companies that soon go into effect.
The following checklist outlines basic questions for understanding your organization’s current data protection posture for handling of personal and sensitive data. This checklist is not intended to duplicate or represent a holistic cybersecurity framework, such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework. Rather, it is a streamlined means to zero in on some important questions to address regulatory risk. Consider leveraging it to enhance your organization’s data privacy practices.
Understand your data protection needs through scoping, assessing, protecting, governing and enabling your control owners to succeed
ASC 250 is critical to the presentation and disclosure assertion of financial statements
The financial markets depend on high quality financial reporting. A fundamental pillar of high quality public financial reporting is reliable, comparable financial statements that are free from material misstatement. Accounting changes and errors in previously filed financial statements can affect the comparability of financial statements. Read further for an overview of the types of accounting changes that affect financial statements, as well as the disclosure and reporting considerations for error corrections.
On August 25, 2022, the Securities and Exchange Commission (SEC) adopted amendments to Item 402 of Regulation S-K, Executive Compensation, to implement requirements mandated by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rules add Item 402(v) of Regulation S-K and will require registrants to disclose the relationship between executive compensation actually paid and financial performance of the registrant.
Intended to provide more comparable disclosures to evaluate executive compensation policies
Kral Ussery is a national CPA firm providing services that external auditors cannot due to independence concerns, such as accounting advisory, valuations, and internal audits. Download our services flyer.
About Governance IssuesTM
Governance IssuesTM is an electronic newsletter published by Kral Ussery LLC, a public accounting firm delivering advisory services, litigation support and internal audits. The newsletter focuses on our practice areas of SEC compliance, internal controls, IT general controls, valuations, PPAs, IPO readiness, M&A transactions, US GAAP compliance and internal auditing.
Content in this newsletter is for general information purposes only and should not be used as a substitute for professional consultation.
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