Audit & Accounting

Following a review of Fannie Mae's accounting practices, the Securities and Exchange Commission said that the mortgage concern didn't comply with two major accounting rules and asked it to restate past earnings.

At long last, the Financial Accounting Standards Board has issued its final rule mandating that companies expense at fair value the stock options that they grant to their employees.

Despite acknowledging the impact of higher producer prices, chief financial officers expect higher capital and technology spending at their companies during the next 12 months, according to a recent survey.

Big Four firm Deloitte & Touche LLP has named 26-year veteran Brian Derksen to the post of deputy chief executive.

Time Warner Inc. reached a $210 million settlement with the Justice Department to end a probe into whether its America Online unit improperly booked ad sales, and proposed a $300 million settlement with the Securities and Exchange Commission to end an investigation into accounting irregularities at AOL.

While fewer chief executives of America's fastest growing companies are optimistic about the U.S. economy's prospects over the next 12 months, they continue to predict a healthy increase in their own company's revenue growth over the next year, according to a survey by PricewaterhouseCoopers.

Triggered by congressional concerns over the marketing of abusive tax shelters by some accounting firms, the Public Company Accounting Oversight Board has proposed new rules restricting the ability of accountants to provide tax services to audit clients.

While a majority of financial executives polled feel that compliance with the sweeping Sarbanes-Oxley Act was beneficial for shareholders and has bolstered internal controls at their respective companies, just as many think Congress needs to revisit the legislation in the near future.

Krispy Kreme Doughnuts Inc. asked the Securities and Exchange Commission for an extra five days to file its 10-Q quarterly report, to give it time to complete an analysis of accounting related to "certain franchise matters."

The number of public companies that disclosed material weaknesses or significant deficiencies in internal controls during the month of November soared to 119, nearly double the 63 reported in October, according to a report by corporate governance and compliance newsletter Compliance Week.