Attorney(s) Speaking
DON’T FORGET YOUR WARRANTY OBLIGATIONS: DISCLOSURE AND COMPLIANCE UNDER SARBANES-OXLEY
PRESENTATION
By
Stacy S. Ingram, Attorney
McKenna Long & Aldridge LLP
The Sarbanes-Oxley Act of 2002 (“SOX”) and related rulemaking added an entirely new level of complexity to the accounting, reporting and disclosure requirements related to warranty obligations for public companies. While the obligation to properly account for and disclose a company’s warranty obligations, and any reserves therefore, are not new, SOX and it’s progeny have caused public companies to review, update and in some circumstances create new internal controls necessary to ensure proper recording of those obligations, as well as related disclosure controls and procedures to ensure proper reporting. On top of this, the Securities and Exchange Commission (SEC) has repeatedly stressed the need for companies to discuss, in more detail that most companies would like
or are prepared for, the critical estimates and policies related to the accounting for these obligations. To bolster its guidance, the SEC, pursuant to its new requirement under SOX to review every public company at least once every three years, has sent comment letters to many public companies insisting on additional and expanded disclosure. Finally, CEOs and CFOs are now required, per SOX, to certify to the accuracy of their companies financial reporting, creating even more pressure to ensure compliance with the operative rules and regulations.
This presentation will discuss the impacts of SOX and related regulatory requirements on the accounting, reporting and disclosure requirements for warranty obligations, with input from both the auditing and legal side, to assist companies in understanding what they need to do to comply.
For more information about this conference, please click here.