PwC examines SEC comment letters

BVWireIssue #196-4
January 30, 2019

fair value for financial reporting
goodwill, fair value, fair value measurements, impairment testing, securities and exchange commission (SEC), intangible

You can learn a lot from the large amount of back-and-forth communications between the SEC and companies over fair value measurement issues. When the SEC reviews financial statements and disclosures of public firms, it may send a comment letter to the company if it has questions or sees problems. PwC has posted its 2018 version of “SEC Comment Letter Trends,” which include topics such as business combinations, fair value (valuation techniques and inputs), and goodwill and other intangibles. Examining the issues in the comment letters can help you make sure you have addressed these areas properly in your own engagements. All of the comment letters and responses from the companies are made public via the SEC website. Plus, you can do a keyword search on specific issues, such as impairment, stock-based compensation, and the like.
Please let us know if you have any comments about this article or enhancements you would like to see.