As we are on the brink of the festive season, I find it's a good time to reflect back on the events of the year that's just about to close. For accountants, 2010 has been quite an eventful year. Here are a few highlights of just a few of the items that have come up on the accounting profession's barometer in 2010:
- Passage of the Financial Reform Bill - hailed by the NY Times as "the biggest overhaul of American financial regulation in decades" (NY Times July 30, 2010), it seeks to tighten up the US financial regulatory system in order to ameliorate some of the issues that are purported to have caused the worst economic downturn since 1929. Of note to accountants, the SEC got wider reaching powers to oversee hedge funds and also credit rating agencies, and derivatives became subject to new regulations that seek to increase transparency.
- Foundation of the International Integrated Reporting Committee - in August 2010 the Global Reporting Initiative and the Prince of Wales' Accounting for Sustainability Project combined forces to establish a committee whose purpose is to promulgate a global framework for sustainability reporting and move towards establishing this reporting within the framework of standard financial reporting.
- European Debt Crisis - significant government bond crises in Ireland and Greece and concerns over Spain are noteworthy for anyone engaged in an accounting or finance role within a multi-national. The sheer impact to foreign exchange alone is enough to make the these professional take note as they consolidate their company's financials into US dollars. Beyond this, there are real and potential issues to consumer purchasing power in Europe which could impact current and future revenues.
- Action Reported to be Imminent Against Ernst & Young for their Role in Lehman Brothers - according to the NY Times and the Wall Street Journal, civil legal action may be brought by the New York attorney general against the Big 4 accounting firm for issues surrounding their role in certifying the financial statements of the now failed brokerage firm from 2001 to 2008. It is of note to the accounting profession that this action, if it is brought forward, would be directed at EY rather than Lehman.
Happy Holidays everyone! I hope you have a peaceful and restorative season.
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