FAS 123(R) also provides rules for share-based payments that are issuer
liabilities, such as share appreciation rights settled in cash.
Section 203--Audit Partner Rotation: The SOA amends '34 Act Section 10A to make it unlawful for a registered public accounting firm to provide audit services to an issuer
when the lead (or coordinating) audit partner or the partner responsible for reviewing the audit, has performed audit services for the issuer
in each of the issuer
's five previous fiscal years.
PIPEs have been infamous for something known as a "death spiral," which is essentially the dilution of the company's stock price as a result of the issuer
failing to set fixed conversion prices on the convertible securities in advance, instead of at the time of conversion.
Which is likely to result in substantial injury to the financial interests of the issuer
or to investors: The attorney has become aware of information that an officer, employee or other person associated with the organization is engaged in action, or intends to act or refuses to act, in a way that will violate his or her legal obligation, and such action or lack of action could reasonably be expected to have a material effect on the issuer
's financial statements or property, and which could therefore reasonably affect investors.
The proposed adverse determination again contains the agent's statement of facts and conclusions of law and gives the issuer
three choices: contact the agent to begin negotiations on a closing agreement (including a payment and redemption of the bonds to avoid assertion of tax liability against the bondholders); protest the proposed adverse determination to Appeals; or seek assistance from the Office of the Taxpayer Advocate.
At that time, 10 percent of the issuers
offered plans with interest rates of less than 16 percent, and only two issuers
had plans with rates of less than 14 percent.
249 will limit the deductibility of a payment made by the issuer
to repurchase debt convertible into the issuer
's stock (or that of certain controlled corporations) if the payment exceeds the adjusted issue price, plus a normal call premium for nonconvertible bonds.
The lead audit partner and/or the concurring review partner must rotate off the engagement if he or she has performed audit services for the issuer
in each of the five previous fiscal years.
In addition, the test to determine whether it is more likely than not that a right to redeem or purchase by the issuer
(or a related person) will be exercised should include a safe harbor similar to that contained in Treas.
In some cases, the issuer
may have to bear the legal and due diligence expenses of the investor.
Since the beginning of 1992, virtually all the nation's largest issuers
have reduced rates for all or significant portions of their credit card customers.
Prohibit audit engagement team partners from providing audit services to the issuer
for more than five consecutive years;
In Field Service Advice (FSA) 200142005, the IRS addressed the tax treatment of a payment received by an issuer
of a callable/puttable bond.
Procurement cards are corporate charge cards issued to specific employees of a business after that business enters into a contract with a card issuer
involving use of the card, financial responsibility, billing, payment, etc.