scholarly journals Privately-Held Companies: Legislation, Regulation, and Limited Dissemination of Financial Information

2019 ◽  
Vol 47 (4) ◽  
pp. 28
Author(s):  
Zoeanna Mayhook
Keyword(s):  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Information ◽  
Publicly Traded ◽  
Private Companies ◽  
Public And Private ◽  
Publicly Traded Companies ◽  
The Public ◽  
Disclosure Requirements ◽  
Privately Held

Publicly-traded companies have reporting and disclosure requirements set by the U.S. Securities and Exchange Commission (SEC), which includes the public disclosure of financial statements and an annual 10-K report. In contrast, privately-held companies most often do not meet the SEC filing requirements, and therefore, are not required to disclose financial information. For investors and business researchers, this can provide clear challenges for researching privately-held companies. This paper first highlights a sample of the significant legislation and rules affecting disclosure requirements of public and private companies. Then, it offers other government sources for company and industry financial information. Finally, it suggests further resources to educate business owners, investors, and business researchers.

Assurance on XBRL for Financial Reporting

2008 ◽  
Vol 22 (3) ◽  
pp. 353-368 ◽  
Author(s):  
R. David Plumlee ◽  
Marlene A. Plumlee
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Information ◽  
The Public ◽  
Business Reporting ◽  
Paper Version ◽  
Public Company ◽  
Reporting Environment

SYNOPSIS: Since 2004, the Securities and Exchange Commission (SEC) has taken steps toward requiring eXtensible Business Reporting Language (XBRL) to be used in its filings, including a voluntary filing program. “Tagging” financial information using XBRL creates documents that are computer readable and searchable. Once XBRL is required, investors are likely to demand assurance on the tagging process. The Public Company Accounting Oversight Board (PCAOB) has issued guidance on attest engagements regarding XBRL financial information furnished under the SEC’s current voluntary filer program, which relies on the auditor “agreeing” a paper version of the XBRL-related documents to the information in the official EDGAR filing. This approach may be adequate for the current paper-oriented reporting paradigm. However, once filing in XBRL becomes required, the power of XBRL to allow individual financial datum to be extracted from the SEC’s financial database will be realized. This “data-centric” idea is a crucial extension of the traditional reporting paradigm that will alter the way financial and nonfinancial data can be used. The current audit focus on reconciling only the XBRL output with the paper submissions does not address this paradigm shift. In this commentary, we discuss the SEC’s efforts to incorporate XBRL into its filing process and provide a brief overview of the technical aspects of XBRL. The commentary’s principal focus is on several important questions that assurance guidance must address in a data-centric reporting environment, such as, what constitutes an error, or what does materiality mean when individual pieces of financial data will be used outside the context of the financial statements? It also describes some XBRL-related areas where academic research can help guide XBRL-document assurance efforts.

The Quantification of Law: Counting, Predicting, and Valuating

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Rafael Viana Ribeiro
Keyword(s):  
Legal Reasoning ◽  
Public Institutions ◽  
Private Companies ◽  
Public And Private ◽  
Legal Professionals ◽  
The Public ◽  
Past Behavior ◽  
Legal Arguments ◽  
Institutional Actors ◽  
Massive Databases

Legal reasoning is increasingly quantified. Developers in the market and public institutions in the legal system are making use of massive databases of court opinions and other legal communications to craft algorithms to assess the effectiveness of legal arguments or predict court judgments; tasks that were once seen as the exclusive province of seasoned lawyers’ obscure knowledge. New legal technologies promise to search heaps of documents for useful evidence, and to analyze dozens of factors to quantify a lawsuit’s odds of success. Legal quantification initiatives depend on the availability of reliable data about the past behavior of courts that institutional actors have attempted to control. The development of initiatives in legal quantification is visible as public bodies craft their own tools for internal use and access by the public, and private companies create new ways to valorize the “raw data” provided by courts and lawyers by generating information useful to the strategies of legal professionals, as well as to the investors that re-valorize legal activity by securitizing legal risk through litigation funding.

scholarly journals Automating security infrastructures: Practices, imaginaries, politics

2020 ◽  
pp. 096701062093351
Author(s):  
Nathaniel O’Grady
Keyword(s):  
New York ◽  
New Technologies ◽  
Emergency Communication ◽  
Private Companies ◽  
Public And Private ◽  
The Public ◽  
Critical Security Studies ◽  
Private Organizations ◽  
Automated Technology ◽  
Security Infrastructure

This article contributes to emergent debates in critical security studies that consider the processes and effects that arise where new forms of automated technology begin to guide security practices. It does so through research into public Wi-Fi infrastructure that has started to appear across the globe and its mobilization as a device for warning the public about emergencies. I focus specifically on an iteration of this infrastructure developing in New York called LinkNYC. According to the infrastructure’s operators, the processes that underpin emergency communication have gradually become ‘automated’ to accelerate LinkNYC’s deployment during crises. The article pursues three lines of inquiry to explore the automation of security infrastructure, in turn making three correspondent original contributions to wider debates. First, it unpacks the real-time analytics and platform-based data-sharing techniques cultivated to automate emergency communication. Here, I expand understanding of the new forms of automation now integrated into technologies harnessed for security and their practical effects. These forms of automation, I demonstrate secondly, are situated by those governing into wider imaginaries concerning the transformative promise automation bears. I argue that the proliferation of these imaginaries play a crucial role in justifying and dictating the enrolment of new devices into security. Third, it explores how automation affords private companies the opportunity to exercise discretionary decisionmaking that changes how and when infrastructure should operate during emergencies. Developing this argument, I add new dimensions to debates regarding the political ramifications associated with automation by claiming that automation redistributes authority across the public and private organizations that increasingly coordinate in bringing new technologies to bear in the security domain.

Thirty years after Jensen’s prediction: Is private equity a superior form of ownership?

2020 ◽  
Vol 36 (2) ◽  
pp. 291-313 ◽  
Author(s):  
Peter Morris ◽  
Ludovic Phalippou
Keyword(s):  
Private Equity ◽  
Financial Statements ◽  
Harvard Business Review ◽  
Corporate Ownership ◽  
Public And Private ◽  
The Public ◽  
Equity Model ◽  
High Level ◽  
Time And Energy ◽  
Positive Results

Abstract Almost exactly 30 years ago, a famous article by Michael Jensen in the Harvard Business Review predicted that private equity would ‘eclipse’ the public corporation because it was a superior form of corporate ownership. Trends since 1989 seem to bear out Jensen’s prediction. Much time and energy has gone into studying whether the private equity model does see companies being run better for investors and society. Progress has been made and most studies find positive results. But samples are usually relatively small. And the relative complexity of private equity transactions, combined with a high level of privacy, makes it hard to find financial statements that are tractable enough for meaningful analysis. After 30 years of research, we argue that a conclusive answer to the question remains further away than might seem to be the case. In the meantime, the appropriate regulatory response involves narrowing the ‘regulatory gap’ between public and private markets.

scholarly journals Conflict Minerals Disclosures: Reporting Requirements and Implications for Auditing

2015 ◽  
Vol 10 (1) ◽  
pp. A1-A23 ◽  
Author(s):  
Jomo Sankara ◽  
Deborah L. Lindberg ◽  
Khalid A. Razaki
Keyword(s):  
Democratic Republic ◽  
Publicly Traded ◽  
Wall Street ◽  
Publicly Traded Companies ◽  
Conflict Minerals ◽  
Consumer Protection Act ◽  
Reporting Requirements ◽  
Disclosure Requirements ◽  
Reporting Requirement ◽  
Republic Of The Congo

SUMMARY Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) created a reporting requirement for publicly traded companies that manufacture products using “conflict minerals” from the Democratic Republic of the Congo (DRC) or adjoining countries. Under certain circumstances, companies must file a Conflict Minerals Report (CMR) in addition to a Specialized Disclosure Report (Form SD). Companies that claim their products are free of conflict minerals from the DRC must have an audit of their CMR. We investigate the extent to which companies have complied with the new disclosure requirements as well as the current and future auditing implications.

SEC XBRL Filing Requirements: An Instructional Case on Tagging Financial Statement Disclosures

2010 ◽  
Vol 25 (3) ◽  
pp. 489-511 ◽  
Author(s):  
Ernest Capozzoli ◽  
Stephanie Farewell
Keyword(s):  
Oil And Gas ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Publicly Traded ◽  
Item Level ◽  
Interactive Data ◽  
The U.S

ABSTRACT: On January 20, 2009, the U.S. Securities and Exchange Commission (SEC) released Rule 33-9002 for the phase-in of interactive data (SEC 2009a). An important component of this rule is the phase-in of detailed tagging of financial statement note disclosures. Tagging is the process of associating a taxonomy element with a financial statement concept for a particular context. While some of the filers have participated in the SEC Voluntary Filing Project and prepared instance documents tagged at the line item level most have not prepared detail-tagged notes to accompany the financial statements (SEC 2005; Choi et al. 2008). This case discusses the structure of disclosures, as they exist in the 2009 U.S. GAAP Taxonomy, followed by a discussion of dimensional extensions and concludes with an example of block and detailed disclosure tagging using Rivet Software’s Dragon Tag (Rivet 2009). The example uses the capitalized costs disclosure for Anadarko Petroleum, a publicly traded company. Following the example, the case requires students to block and detail tag the capitalized costs disclosure for Dig Deep, a hypothetical oil and gas company. By completing the case, students develop an understanding of the current U.S. GAAP taxonomy, skills relating to mapping and tagging processes, and make use of a commonly used XBRL taxonomy and instance document creation program.

scholarly journals Independent Audits of Conflict Minerals Reports

2013 ◽  
Vol 7 (2) ◽  
pp. A24-A32 ◽  
Author(s):  
David N. Herda ◽  
Herbert W. Snyder
Keyword(s):  
Central Africa ◽  
Securities And Exchange Commission ◽  
Publicly Traded ◽  
Human Rights Abuses ◽  
Publicly Traded Companies ◽  
Conflict Minerals ◽  
Audit Firms ◽  
Final Rule ◽  
Audit Reports ◽  
Corporate Social

SUMMARY There has been an increasing international focus on “conflict minerals,” which are sourced from mines in Central Africa and believed to benefit armed groups that engage in serious human rights abuses. In August 2012, the U.S. Securities and Exchange Commission (SEC 2012) issued a final rule (Release No. 34-67716) related to implementing new disclosures required by the Dodd-Frank Act that are aimed at dissuading publicly-traded companies from engaging in trade that supports conflict minerals. Beginning in 2014, many publicly traded companies will be required to issue Conflict Minerals Reports, and have the reports independently assured. For the first time, there is an SEC audit requirement for corporate social responsibility information. Significant uncertainty surrounds the nature of the requisite audit procedures and the form and content of the audit reports themselves. For example, issuers have the option of engaging auditors for either an attestation engagement or a performance audit. We summarize the SEC's final rule, with particular focus on the audit requirement, and discuss some challenges that audit firms face.

scholarly journals Corporate governance and executive perquisites

2017 ◽  
Vol 16 (1) ◽  
pp. 21-45 ◽  
Author(s):  
Angela Andrews ◽  
Scott Linn ◽  
Han Yi
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Ordinary Least Squares ◽  
Securities And Exchange Commission ◽  
Corporate Disclosure ◽  
Content Type ◽  
Listed Firms ◽  
The Public ◽  
Disclosure Requirements ◽  
Rule Change

Purpose The purpose of this paper is to examine the relation between executive perquisite consumption and indicators of corporate governance after the Securities and Exchange Commission (SEC) expanded the disclosure requirements related to perquisites. Design/methodology/approach This study uses ordinary least squares and Tobit regressions to examine the dollar value of perquisites consumed, the number of perquisites consumed and the types of perquisites consumed. Findings The analysis shows that firms with weak corporate governance are more likely to award perquisites to executives. Firms characterized as being more prone to the presence of agency problems are associated with greater levels of perquisite consumption. Finally, there is evidence that not all perquisite consumptions can be attributed to an agency problem. Efficiently operating firms are associated with greater levels of perquisite consumption as are larger firms. Research limitations/implications The authors examine firms in the period immediately after the SEC initiated the expanded disclosures. This may limit the generalizability of the results to other exchange-listed firms that changed their perquisite policy as a result of the rule change. Originality/value The paper extends the literature on corporate governance and mandatory corporate disclosure by investigating the association between corporate governance characteristics and perquisite consumption. This paper examines this relation immediately after the SEC expanded the disclosures surrounding perquisites to provide the public with more transparent disclosures.

scholarly journals LA VALORACION DE LOS EXPERTOS SOBRE LAS ESTADISTICAS RELATIVAS AL CONOCIMIENTO DE LOS TURISTAS

2021 ◽  
pp. 277-299
Author(s):  
María Pilar Peñarrubia Zaragoza
Keyword(s):  
Information System ◽  
Public Administration ◽  
Private Companies ◽  
Public And Private ◽  
Tourist Behavior ◽  
The Public ◽  
Behavior Based ◽  
Private Management ◽  
Tourist Information

El conocimiento del comportamiento del turista, a partir de la información que generan y recogen tanto administraciones públicas, como privadas, resulta clave para la planificación de los destinos. Por ello, es fundamental conocer la opinión de los expertos al respecto. La realización de entrevistas personales a diferentes actores de la administración pública, la empresa privada y el ámbito universitario ha permitido detectar necesidades y demandas reales de información en relación al comportamiento del turista, así como realizar una reflexión relativa a la necesidad de la formulación de un Sistema de Información Turístico público. Knowledge of tourist behavior, based on the information generated and collected by both public and private management, is key for destination planning. Therefore, in this regard, it is essential to know the experts' opinions. Carrying out personal interviews with different players in the public administration, private companies and the academy has enabled finding actual needs and requirements of information regarding tourist behaviors, as well as reflecting on the necessity of the development of a public Tourist Information System.

scholarly journals La investigación empírica en materia de rendición y fiscalización de cuentas públicas

2017 ◽  
Vol 11 (21) ◽  
Author(s):  
Silverio Tamez Garza ◽  
Vicente Montesinos Julve ◽  
Alfonso Hernández Campos ◽  
José Luis Leal Martínez
Keyword(s):  
Private Sector ◽  
Legal Regulation ◽  
Theoretical Framework ◽  
Financial Information ◽  
Financial Disclosure ◽  
Public And Private ◽  
The Public ◽  
Traditional Research ◽  
Audit Opinions ◽  
Public And Private Sector

Keywords: auditing, disclosure, explicative theories, public sectorAbstract. The main objective of this paper is to analyze the theoretical framework to explain the reasons why public and private entities disclose financial information, as well as those applicable to studies of the types of opinion issued audit opinions theories. The existence of a legal regulation makes them the obligation to publish certain information, although some entities disclose more than required by the regulations. Therefore, following the traditional research in accounting online, we review the relevant theories that explain the financial disclosure in the public and private sector. We begin first with analyzing the theories that have been applied to the private sector as part of these are to be applied in the public sector.Palabras clave: auditoría, divulgación de Información, sector público, teorías explicativasResumen. El objetivo principal de este artículo es analizar el marco teórico que permite explicar los motivos por los cuales las entidades públicas y privadas divulgan información financiera, así como, las teorías aplicables a los estudios de los tipos de opinión emitidos en los dictámenes de auditoría. La existencia de una regulación normativa hace que tengan la obligación de publicar cierta información, aunque algunas entidades divulgan más de lo exigido por la normativa. Por tanto, siguiendo la investigación tradicional en la línea contable, realizamos una revisión de las teorías aplicables que explican la divulgación de información financiera tanto en el sector privado así como en el público. Iniciamos primero con analizar las teorías que se han aplicado al sector privado ya que de éstas se parte para ser aplicadas en el sector público.

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