KPMG's SEC Reporting & Compliance Course

On September 21-22, 2009, KPMG sponsored an executive education titled SEC Reporting & Compliance Course held in Las Vegas, Nevada. The course was instructor led and designed to provide corporate accountants and financial executives the necessary information on how to remain compliant with the law using Securities and Exchange Commission (SEC) guidelines in financial reporting and disclosures for public companies.

The course gave participants a “practical, hands-on experience in what is required to prepare Form 10-K Annual Report, 10-Q Quarterly Report and 8-K Current Report, and the proxy statement requirements. The course also discussed current important issues in the SEC’s agenda such as trends in SEC comments, Extensible Business Reporting Language (XBRL) and using International Financial Reporting Standards (IFRS) in SEC filings.” The demographic of the participants were comprised of CEO, CFO’s, Controllers, Lawyers and Directors of SEC Financial Reporting. Despite these titles and years of SEC reporting experience, the participants came with a “naivety” and eagerness to learn and confront the truth.

The seminar was led by Mary Ann Busse who started her professional life with the SEC in Washington, D.C. She comes with 25 years experience in handling SEC related businesses. Ms. Busse thinks she is funny. However, I personally believe she is not only funny; she is also witty and most importantly knowledgeable in the subject matter.

This course was not your ordinary course where participants sit and listen. It came with real life cases where participants have to make an assessment on what disclosure is required or whether the disclosure complies with the requirements of the regulation. The participants analyzed actual SEC filings and small group case exercises that would keep you thinking and analyzed whether the disclosure was appropriate or not. These exercises helped the participants reinforce their understanding of the case. The participants were grouped with six members each and deliberated on the issues and whoever was appointed to report that day must be ready to represent the group. If the appointed leader of the day is “out of touch” of the realities of SEC reporting and compliance, it can pose a real challenge for the participant. However, it looked like everybody was proficient in the subject matter.

For the Investors

The SEC guidelines were designed to protect the investors, whether sophisticated or not, the law is on their side. The SEC is on the manhunt for corporate crooks, according to Ms. Busse, especially now that the commission has new leadership. The disclosures have never been challenging and extensive to protect investors. But is it worth it?

For the Financial Executives

For the participants, it comes with an enormous responsibility. SEC reporting and compliance became too personal for the participants because it carries a huge price not only for the company but to the executive as well. In order to win the battle, companies must be armed with the necessary artillery to comply with the requirements. Compliance also comes with a huge price tag. From an executive perspective, most of the participants believe this is a complete waste of shareholder money.

Overall, the course was educational in helping participants realized that as much as they think they know, there was much more to learn and this course gets you started down the right path.