The Treasury and the Internal Revenue Service issued proposed regulations relating to disguised payments for services rendered by a partner to a partnership. Private fund managers have used management fee “waiver” mechanisms by reducing the management fee payable to the fund’s manager and the receipt of a corresponding profits interest by the general partner. The … Read more »
Category: Accounting
Do Law Firms Need Compliance Programs?
Do as I say; Not as I do. The bankruptcy of Dewey & LeBoeuf sent shivers throughout big law firms. The firm could trace its history back 100 years and employed over 1000 lawyers when it exploded. Last week, key leaders of the firm were charged with securities law violations and criminal theft charges related … Read more »
Borrowings and Form PF
A question popped up during a meeting of some real estate compliance folks talking about Form PF. How do you treat subsidiary mortgage borrowings? Question 12(a) asks for the dollar amount of borrowings for the fund. Two main issues came into play: write-downs and recourse. As many real estate funds are still recovering from the … Read more »
Goodbye SAS 70; Hello SSAE 16
Apparently I missed this big change. Statement on Auditing Standards No. 70 (SAS 70) was a widely used reporting tool for service organizations all throughout the globe. However, the migration towards more globally accepted accounting principles has put SAS 70 in the rearview mirror. Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on … Read more »
PCAOB is Ruled Unconstitutional
This morning, the United States Supreme Court issued its opinion in the case of Free Enterprise Fund v. PCAOB. For me in the compliance world, the case was about the viability of PCAOB under Sarbanes-Oxley. For the constitutional scholars it is an important separation of powers case. Responding to concerns about accounting that led to … Read more »
SEC Decides to Think Further About IFRS
The Securities and Exchange Commission voted to issue a statement that lays out its position regarding global accounting standards. They want to make it clear that “the Commission continues to believe that a single set of high-quality globally accepted accounting standards would benefit U.S investors.” By 2011, the SEC will decide whether to incorporate IFRS … Read more »
Tuesday Morning Quarterback of Free Enterprise v. PCAOB
On Monday, the Supreme Court listened to the oral arguments in Free Enterprise Fund v. Public Company Accounting Oversight Board (08-861). For me in the compliance world, the case is about the viability of PCAOB under Sarbanes-Oxley. For the constitutional scholars it is an important separation of powers case. Responding to concerns about accounting that … Read more »
Is PCAOB Constitutional?
Now that Jones v. Harris has been argued, we have to sit and wait for the decision. But there is another compliance case coming up for argument in front of the Supreme Court: Free Enterprise Fund v. PCAOB. The PCAOB case is much sexier than the Jones case since it involves the president’s constitutional powers … Read more »
Fair Value Accounting: What Lawyers Need to Know
Bruce Carton of Securities Docket put together a great panel of securities and accounting experts to discuss the evolution of fair value accounting regulations and the impact of the guidelines in accounting and legal contexts. Presenters Ray Ball, Professor of Accounting, Univ. of Chicago, Booth School of Business Andy Wong, Analysis Group Michael Young, Willkie … Read more »
New Rules Ease the Restructuring of CMBS Loans
The Treasury Department released new tax rules that make it easier for property owners to restructure loans that were packaged and sold as Commercial Mortgage Backed Securities. The IRS passed relief for residential mortgage packed securities in May, 2008. Until now, tax rules have made it impossible for borrowers who are not in default to … Read more »