In order to make the U.S. financial system more stable and robust, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010. The act contains numerous provisions intended to strengthen corporate accountability affecting all U.S. public and many private companies. This publication provides an overview of the reforms introduced by the Dodd-Frank Act, and highlights the accounting, reporting and disclosure implications that might arise because of these reforms.
Much of the current analysis of the impact of the Dodd-Frank Act has centered on those regulations that focus on bringing stability to the U.S. financial markets. Among the provisions that are of immediate concern are those dealing with asset-backed securities, required disclosures relating to executive compensation, incentive compensation claw back requirements under certain conditions, and OTC derivatives disclosures. Many of these also require new reporting practices or reports. This publication is offered not only as a reminder of some key aspects of the accounting and reporting implications of Dodd-Frank, but also as a starting point for a conversation about ways to evaluate and address possible vulnerabilities and risks facing these businesses.