|
|
 | ||
| ||
|
|
|
News < Back Sarbanes Oxley : Technology : Policy Management Greatly Reduce Exposure to Improper Issuance and Accounting of Stock Options
Built on LogicalApps ACTIVE Governance? platform, which enables organizations to enforce corporate policies using embedded controls at the application level, this new offering will enforce and monitor policies associated with stock option issuance, dating and pricing, significantly reducing the risk of a material event. Using these new controls, companies will be able to optimize their investment in products such as Equity Edge? from E*Trade to better facilitate their compliance with FAS 123(R), reducing their risk and cost of compliance with Sarbanes-Oxley through proactive, accurate, flexible, and auditable controls and reporting. ?Companies need more than compliance reporting and documentation, they need solutions that close control gaps and bring a heightened level of operational compliance and process optimization,? said Kathleen Wilhide, Research Director, Compliance and Business Performance Management Solutions at IDC. ?Identifying and automating high risk operational processes such as stock option management is a goal of forward looking companies as they strive to achieve efficiency, embed compliance and mitigate risk.? By embedding accounting rules for option grants and exercise transactions within the core HR, Payroll and Accounting systems companies can prevent violations from taking place and initiate immediate remediation, should an improper transaction be attempted. Using ACTIVE Governance to link products such as E*Trade?s Equity Edge? to a company?s ERP system, the new controls will provide three key benefits: • ensuring correct accounting for options; • ensuring that cash received for exercised options is accounted for correctly and recognized in the correct accounting periods; and • ensuring taxes are appropriately booked on the options. ?The repercussions of not fully complying with the Financial Accounting Standards Board's final expensing standard range from expensive to felonious for companies and executives,? said Chris Capdevila, CEO of LogicalApps. ?LogicalApps technology and expertise enable companies to optimize the leading stock plan management and reporting software solutions to address today's complex equity compensation requirements, preventing costly and brand-damaging violations from ever taking place.? With these new controls and integration with products such as Equity Edge, a company?s finance department will be alerted that a back-dated option grant has been allocated and has not been accounted for appropriately so that the administrators can take action to proactively remediate the occurrence. Auditors are increasingly demanding this level of oversight and accountability. LogicalApps is the provider of embedded governance software for enterprise applications. The company?s solutions automate the real-time enforcement and monitoring of business controls, enabling customers to optimize operational efficiency and ensure continuous compliance with today?s regulatory mandates. More than 150 blue-chip companies rely on LogicalApps to reduce compliance costs, increase efficiency in business operations and minimize risk resulting from errors, misuse and fraud within enterprise applications. Founded in 2000, LogicalApps is privately-held with headquarters in Irvine, California. For more information visit: www.logicalapps.com 
|
|
|
||||||||||||
 | |||
| |||
| |||
|
© 2019 Simplex Knowledge Company. All Rights Reserved. | TERMS OF USE | PRIVACY POLICY |
