Regulation

Where are the biggest opportunities for business and government to work together?

CEOs around the world expect their governments to play a role in boosting national competitiveness. Most identify education, infrastructure, and financial sector stability as areas where governments can make a difference. Progress is often accelerated by close cooperation between public and private sectors.

In the US, business leaders don’t hide their disappointment in their government, be it in managing the implications of the economic crisis or the fiscal deficit and debt burden. Yet, evidence shows that difficult government-business relationships can be overcome in the interest of addressing shared priorities. One such area is skills development. More than 50% of US CEOs, for example, are increasing their investments in formal education systems as they look to fill critical talent gaps.

 

Featured regulation insights

 

10Minutes on conflict minerals

10Minutes on conflict minerals provides insight into the strategic benefits and risks companies will want to focus on as they comply with the SEC's conflict minerals rule. The rule is effective for 2013 calendar year operations, so regardless of whether companies view conflict minerals as a supply chain opportunity, risk to their brand or another regulatory to-do, they should act now to prepare.

 

The widespread reach of FATCA: How will it affect your business?

Understanding its impact and the path forward for nonfinancial multinational businesses.

 

New FATCA guidance for qualified intermediary, withholding foreign partnership, and withholding foreign trust applicants

Important guidance for entities that are classified as FFIs under FATCA and considering applying for qualified intermediary, withholding foreign partnership, or withholding foreign trust status.

 

New multilateral action to combat tax evasion

Governments in Europe announce agreement to develop and pilot multilateral tax information exchange arrangements.

 

IRS releases draft FATCA registration forms and additional information regarding FFI lists

Form 8957, when issued in final form, may be used by foreign financial institutions (FFIs) to register for FATCA purposes.

 

Applying FATCA to captive insurance arrangements: Surprising results may occur

In this Newsbrief, we take a closer look at the potential impact of FATCA on the global captive insurance market.

 

The quarter close: Publication and video perspectives

This quarterly publication provides key highlights from the last few months and identifies additional resources that provide more detailed information and guidance.

 

The insurance industry and FATCA – Moving from assessment to implementation: Top 13 in ’13

The final FATCA regulations released in January brought clarity on some issues the insurance industry had identified in the proposed regulations. While some provisions in the final regulations attempt to simplify the impact on the insurance industry, other provisions have ultimately complicated FATCA's impact.

 

Hearing provides insight on regulatory timetable: But uncertainty remains the norm

The US Senate Banking Committee held oversight hearings on the implementation of the Dodd-Frank Act. The hearing provided an update on the regulatory timetable.

 

To the point: Current issues for boards of directors

This edition of To the point: Current issues for boards of directors, reviews guidance from the SEC and DOJ about the Foreign Corrupt Practices Act and policy updates from the ISS on executive compensation, board response to proposals with majority shareholder support, hedging of company stock, and what directors should know about data security and cyberattacks.

 

10Minutes on derivatives reform for non-financial services companies

For non-financial services companies, regulations introduced by the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III will result in significant changes to the derivatives market. Every aspect of a corporation using derivative to manage risk will ultimately be affected—from risk strategies and corporate funding to operations and accounting. This 10Minutes provides insight on the impacts of new regulation on corporate entities and what those entities need to do now in order to meet impending reform deadlines and ensure they're well equipped to manage increased costs and compliance responsibilities.

 

Washington National Tax Services Insight: IRS issues guidance related to final "repairs" regulations and delay of effective date

Final regulations regarding deduction and capitalization of expenditures related to tangible property (the final repairs regulations) are expected to be released in 2013.

 

Washington National Tax Services Insight: New IRS/Treasury "business plan" calls for important research credit guidance

The government is working on guidance to address three important and long-standing topics related to the section 41 research credit.

 

Washington National Tax Services Insight: 2012 election results point to continued divisions over tax policy

Can compromises be reached before the end of this year to avoid the 'fiscal cliff' effect of scheduled tax increases and spending reductions

 

Washington National Tax Services Insight: UN transfer pricing guidance for developing countries could increase burdens on multinationals

UN Committee of Experts on International Cooperation in Tax Matters (the Subcommittee) approved the current unedited version of the UN Transfer Pricing Manual

 

Washington National Tax Services Insight: Court rejects research credit claim for customization and configuration of software

US v Davenport judgment to the government with respect to the taxpayers' claims for research credits related to certain software customization

 

Eurozone sovereign debt crisis: Minimizing surprises despite Eurozone uncertainties

How will the effects of the European debt crisis impact US businesses? PwC shares its views on what companies can do to manage the changes that lie ahead.

 

Point of view: Mandatory audit firm rotation: Why other changes would be better for investors

Objectivity, independence, and professional skepticism are fundamental to audit quality. Mandatory audit firm rotation would not enhance audit quality.

 

Point of view: PCAOB Proposed Auditor Reporting Model Changes: Evaluating auditor assurance on information outside of the financial statements

PwC examines, and shares our views on, the PCAOB's concept release on the auditor's reporting model including auditor assurance on information outside of the financial statements.

 

Point of view: PCAOB Proposed Auditor Reporting Model Changes: Evaluating auditor's discussion and analysis

PwC examines, and shares our views on, the PCAOB's concept release on the auditor's reporting model including evaluating auditor's discussion and analysis

 

Point of view: PCAOB Proposed Auditor Reporting Model Changes: Evaluating expanded use of emphasis paragraphs

PwC examines, and shares our views on, the PCAOB's concept release on the auditor's reporting model including the expanded use of emphasis paragraphs.

 

Is It Time for the United States to Consider the Patent Box?

PwC Tax leaders examine the patent box regimes adopted by six EU countries and consider key issues to be addressed in designing a similar tax regime for intellectual property (IP) in the United States that would attract and retain domestic IP development and ownership.

 

PwC 2012 State of the Internal Audit Profession Study

PwC’s 8th annual examination of the internal audit profession, focuses on this rising importance of risk management and internal audit's contribution by taking a closer look at how stakeholders and board members view critical risks and the role internal audit could be playing.

 

10Minutes on the future of revenue recognition

Revenue, or the “top line,” is a closely monitored measure of an entity's growth and market share. The FASB and IASB are currently in the process of replacing existing revenue guidance with a new global accounting standard for all revenue transactions. How will this change affect your business?

 

How credible is your sustainable reporting?

CEOs and boards know the benefits of corporate responsibility reporting included increasing profitability, reducing supply chain risks and costs, and garnering sustainability ratings and recognitions. Overall, companies need this information to drive operational efficiencies and facilitate innovation. Ultimately though, to win stakeholders’ trust, companies need to be credible with respect to sustainability. How do they achieve it?

 

Making over healthcare

While there’s still a great deal of uncertainty around the specifics of healthcare reform, one thing’s clear: The healthcare industry in the US will never be the same. And 2011 is shaping up to be a makeover year for healthcare providers, health insurers, pharmaceutical and life sciences companies, and employers. But what are the most significant issues in play? A recent report identifies six.

 

Seeking shared agendas with governments

By helping create jobs in the private sector and by investing in infrastructure, governments can help create an environment conducive for growth. In fact, almost half of CEOs surveyed say that improving the country’s infrastructure and fostering a skilled workforce should be government’s top priorities. But how can CEOs enter strategic and collaborative relationships with governments to pursue their own growth agendas?

 

10Minutes on the future of lessee accounting

As early as 2014, in the US and internationally, leases could be required to appear on companies' balance sheets, which will impact debt and earnings metrics, and some companies' ability to borrow or spend capital PwC looks at the issue, and how procurement, IT, tax, treasury, operations, HR, finance and accounting can all be affected.

 

Decision Points for Tax Policy: 2012 tax legislative outlook

In this publication, PwC's Washington National Tax Services (WNTS) offers a preview of the challenges facing the new Congress in 2011, including the outlook for tax reform, deficit reduction measures, energy tax incentives, health care issues, and other tax policy matters of importance to today's business leaders.

 

Trust but verify: From transparency to competitive advantage

“Trust but verify” was a slogan used during the Cold War to describe the basis for transparency in political relationships. Today, the term can be used to describe a strategy for narrowing the “trust gap” not between nations, but between companies and stakeholders. Whether you are trying to prevent a trust-eroding event or repair the damage after one has occurred, transparency is key. But it's not the only factor of a successful solution. You need credibility to back up the promise of transparency. What can companies do to achieve both?

 

Defining the lead director role

A new role emerged as a result of recent corporate scandals: the lead director, whose main function is to foster greater transparency and accountability among senior leadership. Beyond that, there's been little consensus regarding the responsibilities a lead director should assume. Here we take a closer look at how the role should be defined and what its key offerings are to an organization.

 

Understanding the Dodd-Frank Act

Touted as a bill that will completely overhaul the financial regulatory system, the Dodd-Frank Act creates new regulators, regulates new markets, brings new firms into the regulatory arena, and provides new rule-making and enforcement powers for existing agencies. It will have enormous impact on both financial and non-financial services firms. Here we examine the Act in detail, offering you key guidance to better understand its reach and impact.

 

The rise of the public-private partnership

The benefits of PPPs can be compelling. Public-private partnerships don’t simply provide much-needed capital for projects; they can also serve as models of efficiency and reliability and be champions of high levels of accountability and transparency. In addition, PPPs can be cost-effective and time efficient. But are PPPs applicable to all capital projects? We break down the issues in greater deal in this edition of View.