martedì 1 novembre 2011
Top 10 issues for Finance Execs in 2010
Finance & Accounting
Legal & Regulatory
Risk & Compliance
Insights & Education
Top 10 issues for Finance Execs in 2010 Resources Global Professionals Finance & Accounting Blog Wednesday, December 23. 2009 Top 10 issues for Finance Execs in 2010 As we end 2009, a year that was challenging, to say the least, for most, I put together a list of the top 10 issues that finance execs will likely be faced with in 2010.
10. The economy. While some indications are that we are moving out of the recession, we still have many challenges. Most companies are doing more with less, and still face ongoing cost cutting. Expect to see continued restructuring.
9. Financial Regulatory Reform. The House passed their version of regulatory reform late in the year, and the Senate will likely begin deliberations on a version proposed by Senator Dodd in early 2010. Expect to see major regulatory reform to be passed by Congress in early 2010. Some changes expected: regulation of OTC derivatives, creation of a consumer protection agency, expanded proxy access, more responsibility for the SEC, more governance provisions that will impact the way companies are run.
8. Tax Reform. The administration announced some proposals earlier in 2009, but nothing has made it into any legislation at this point, other than the extenders of tax credits passed in late 2009. Expect to see major international tax reform in 2010, perhaps a repeal of LIFO for tax purposes (likely over a period of time), and increases in tax rates required to pay for some of the other reforms/legislation.
7. "Green" initiatives. While the meeting of the minds in Copenhagen appears to have been a bust, we will continue to see more and more initiatives to protect our environment. The House passed the American Clean Energy and Security Act this summer, while relies on a cap and trade scheme. The proposal is stalled in the Senate, but expect to see it reinvigorated once healthcare reform and regulatory reform are done.
6. Ongoing IASB/FASB convergence activities. The Financial Instrument convergence activity is expected to be completed early in 2010. Other major projects to watch: Revenue recognition, Financial Statement Presentation and Lease Accounting.
5. Governance - The Year of the Shareholder. We are seeing more and more influence in standard setting and regulation from well-funded shareholder advocacy groups. They are interested in influencing executive compensation, proxy access, and are well-positioned on several newly formed advisory groups to the FASB, SEC and PCAOB.
4. Impact of Social Media. If you don't have an internal social media policy at your company - you will have one in 2010. There are many issues companies need to address including interplay with Regulation FD, privacy issues, productivity issues and more. A best practice is to have guidelines on how to use SM for business development as well as a standard SM policy.
3. Technology. Technology is part of our lives. Year 2 of XBRL implementation will create more work for large companies, and as more and more investors begin to embrace it - there will be more pressure to have it validated.
2. Newly effective accounting pronouncements, such as FAS 166 and 167 (Securitizations and variable interest entities), and recently issued updates to the codification on revenue recognition kick in in 2010. Make sure you are up to date on the implications for your company.
1. Return of M&A. We are already seeing more M&A activity in the last few weeks of 2009. Expect to see even more in 2010. In particular, watch the interplay of new accounting requirements for business combinations that went into effect last year with the new fair value measurements requirements.