Innovation, independence, and influence: three reasons why America may want to reconsider having a single set of accounting standards worldwide.

Let’s begin with innovation. According to Professor Karthik Ramanna of Harvard Business School, adopting a single set of accounting standards worldwide, such as International Financial Reporting Standards (IFRS), could very likely undercut accounting innovation due to a lack of competition. more

The excise tax on high-premium health insurance policies that’s such a controversial part of the Senate health care bill was always intended to be more than just a revenue raiser. The proposal’s supporters have touted it as a step toward holding down costs by discouraging “overly generous” coverage.

The majority of so-called “Cadillac” health plans would indeed become noticeably less luxurious if the proposal makes it into law, according to research published Thursday by Mercer, a firm that provides consulting, outsourcing, and investment services. more

The Society of Actuaries (SOA) has announced the launch of a global risk management designation, the Chartered Enterprise Risk Analyst or CERA.

The designation will initially be awarded in 12 countries, including many of the major world economies, and will incorporate the name of the CERA qualification currently issued by the SOA in the United States.

Here’s more on the new designation. ###

As follow-on to my last Process Points posting, this blog considers the same premise when it comes to the FCPA.

Complying with the requirements of the Foreign Corrupt Practices Act (FCPA) is not an easy task. And while FCPA compliance can be one of those “out of sight, out of mind” tasks, you might want to be sure your organization understands how FCPA might apply.

Why? Well, it seems that FCPA enforcement activity by the U.S. Department of Justice and the SEC has surged recently. Around the globe, other countries also appear to be stepping up how they address issues of corruption. (See “Ungreasing the Wheels” in The Economist.)

And if any of these authorities determines that you are in violation of FCPA regulations or their country’s laws, those violations can lead to hefty fines, prison time, and other fallout (e.g., negative publicity) that most corporations or individuals don’t want!

A quick refresher: The FCPA makes it illegal for a U.S. issuer, domestic concern, or certain foreign issuers of securities to directly or indirectly bribe foreign government officials through payments or gifts of any value to obtain or retain business or to secure an improper business advantage. In addition, the FCPA also requires organizations to keep books and records that accurately reflect all transactions and to maintain adequate internal accounting controls.

Companies often struggle with several aspects of FCPA compliance such as understanding FCPA requirements and obligations, and creating, implementing and enforcing policies and procedures related to FCPA controls. Not only are these aspects a challenge, but so are the expensive and detailed investigations that must take place once possible FCPA violations are surfaced.

So what should you do to address effective FCPA compliance management? more

Larry Summers, director of the White House National Economic Council, sent some decidedly mixed signals to the American business world on Monday in a speech to the Innovation Economy Conference in Washington.

On the one hand, Summers struck a high tone with a JFK-esque appeal to businesspeople to “think about what your institution should be called on to do, not in its own interest, but in the broader national interest,” according to this report. more