TheCorporateCounsel.net

There is so much going on that there is almost too much to blog. Within the last 24 hours, the SEC has posted the proposal releases that it passed last week. This thursday, the SEC has an open meeting to consider the creation of a new public accounting board. Chairman Pitt wrote a letter to President Bush this week to outline the steps that the SEC has taken to carry out the 10-point plan that the Bush administration issued in March. Boy, the SEC is moving fast…

The proposal regarding disclosure of critical accounting estimates in MD&A may prove to be as controversial as any of the other proposals that have received much more attention. Upon my first reading, I quickly decided i need to create a flow chart to comprehend what a company would need to do in order to comply with this proposal. A pdf of this flow chart is available at http://www.realcorporatelawyer.com/Features/critical%20accounting.pdf.