Compliance
In its fourth-quarter 2024 earnings report, ADM announced it will cut approximately 600 to 700 positions (including about 150 vacant roles) as part of achieving $200 million to $300 million in cost savings for 2025 and up to $750 million in savings over the next three to five years. CEO Juan Luciano cited a weak global market environment and policy uncertainty in 2025. CFO Monish Patolawala stated that the company is still working to eliminate material weaknesses in financial reporting related to inter-segment sales, which had led to a restatement of last year's financial results.
The Conference Board reported on Tuesday that in response to a "dramatic shift" in government policy, U.S. companies are reducing philanthropic activities aimed at promoting racial and gender equality while strengthening support for education and economic opportunity. The survey shows that the biggest challenge facing corporate philanthropy leaders is proving return on investment, followed by navigating political uncertainty and polarization, and measuring social impact. Some companies are adjusting their communication language to be more neutral and expect regulatory changes will not significantly alter budgets.
Latest data show that U.S. manufacturing activity expanded for the first time in 26 months in January, with business optimism rising to a 34-month high. However, the Trump administration's use of tariffs to influence Canada, Mexico, and China has raised concerns about rising inflation and supply chain disruptions.
Flutterwave's CFO Mitesh Popat said the company is focusing on achieving stable revenue and sustainable profitability before any potential IPO. He highlighted resilience amid macroeconomic volatility and steps to enhance credibility following past legal and cyber incidents.
FASB's proposed amendments to internal-use software (ASC 350-40) received 32 comment letters during the public feedback period that ended Monday, with participation from Apple, Salesforce, American Express, Bank of America, and the Big Four accounting firms. Most respondents supported updating this decades-old GAAP guidance, while also offering some suggested changes.
President Trump signed an executive order on Thursday prohibiting federal agencies from issuing, establishing, or promoting a central bank digital currency (CBDC) unless otherwise required by law. The order also establishes a presidential working group led by David Sacks to explore a regulatory framework for digital assets and the possibility of a national digital asset reserve, and revokes a Biden-era executive order on digital assets.
In E.M.D. Sales, Inc. v. Carrera, the U.S. Supreme Court unanimously ruled that employers, when proving that employees are not covered by the overtime exemption under the Fair Labor Standards Act, only need to satisfy the usual civil evidentiary standard of 'preponderance of the evidence,' rather than the higher standard of 'clear and convincing evidence.' The ruling is seen by the legal community as a victory for businesses, helping to unify national standards and reduce litigation risks.
FASB unanimously voted on Wednesday (January 15) not to advance a standard-setting project aimed at requiring banks to disclose more information about credit risk transfer (CRT) transactions. Staff recommended against the project during the meeting, citing that existing accounting guidance (such as credit default swaps and purchased guarantees) and SEC Regulation K already require some disclosures. Despite the vote against it, several board members noted fragmentation in overall risk disclosure and suggested considering systematic improvements within a broader agenda in the future.
The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has settled allegations that Adamis Pharmaceuticals (now DMK Pharmaceuticals) and its former CFO, Robert Hopkins, fraudulently generated revenue through illegal prescriptions and sham consulting agreements. The company agreed to pay $334,314, and Hopkins was barred from serving as an officer of a public company or practicing before the SEC.
Antonio Martino, former CFO of Silvergate Capital, is requesting that the U.S. SEC drop charges against him for misleading investors after the FTX collapse. Martino's lawyers argue that the SEC's charges lack evidence of personal financial motive and that both the company and Martino had fully disclosed the losses.