Annotated Bibliography on USPS, SOX, and Changes in Regulatory - Paper Example

SECTION 1: RULES AND REGULATIONS UPDATES THAT WILL IMPACT USPS

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Accounting Standards Updates Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). November 2016, from http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168619952&acceptedDisclaimer=trueSummary: This update issued by the FASB was focused on cash flows. The amendment in this update is meant to affect all business entities, private or public, and even the federal agencies. Under Topic 230, any entity that has restricted cash or its equivalent are supposed to include them in cash flows and present them for evaluation. The key idea in this update is that cash flows should be able to capture and account for all the cash transactions and changes that take place during an accounting period. However, the significant shortcoming in this update is that it fails to elaborate what is covered by the term restricted cash or restricted cash equivalent. There are also mentions of foreign currency, where it is stated that there must be a specified exchange rate before consideration in the cashflow. It should be noted that this factor aims to be an independent part of the of the change reconciliation. These are done to ensure there is no duplication and that the classification is done appropriately. It appears to be effective because the update has provided a good standard-setting criterion for disclosures at the FASB and how to administer the changes experienced.

United States Government Accountability Office. 2017. U.S. POSTAL SERVICE - Key Considerations for Restoring Fiscal Sustainability

This article reveals that it had become continually difficult for the USPS to maintain its financial performance because it was declining in operations and the expenses incurred kept growing. The GAO, as a result, updated some of the operational dimensions of USPS to ensure they had better strategies that would ensure the results on the balance sheets are better and the performance improved. The expenses alone had increased from 2.6 to 3.1 billion dollars as of 2016. Furthermore, it has introduced some special packages to curb the failing financial condition of USPS. This is particularly involved with the retiree benefits and liabilities. This is stated under GAO-15-290. The article also reveals that updates in the PAEA require that USPS meets its financial obligations towards the benefit plans as per actuarial estimations provided and the amortization issued.

SECTION 2: SOX & SOX CYCLES

Accounting Standards Updates Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force). February 2017, from http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168847131&acceptedDisclaimer=true

Summary: This source stipulates that there will be changes for the requirements of health benefits for the retired Postal workers. The Office of Personnel Management will be tasked with the duty of funding the health benefit premiums of the retirees. It specifies that there is no need to adhere by the provisions of the GAAP. Disclosure of investments are also not required because all that is needed is within the benefit pension plans. however, it should be noted that the updates will only start being effective in December 2018.

Financial Regulatory Reform in the Trump Administration. Corpgov.law.harvard.edu. January 2017, from https://corpgov.law.harvard.edu/2017/01/26/financial-regulatory-reform-in-the-trump-administration/Summary: According to this source, there has been plenty of financial regulatory reforms affiliated with Trumps government. These are the same changes that Trump had in his manifesto during the campaigns. One update of the SOX is the Choice Act that was to be effective in 2017. The Choice Act seeks to restructure the protection of consumer finances. The updates are aimed to lighten internal control duties of public companies especially the smaller and public ones.

McCafferty, J. (2017). Could Trumps Regulatory Rollback Include Changes to SOX?. Misti.com. March 2017, from http://misti.com/audit-news-trends/could-trump-s-regulatory-rollback-include-changes-to-soxSummary: According to this article, Section 404 of the SOX Act need to be revisited and amended. The update seeks to change the assessment of internal controls management which is primarily carried out by internal auditors.

Dodd-Frank isn't the only financial law Trump should change. TheHill. February 2017, from http://thehill.com/blogs/pundits-blog/finance/317798-dodd-frank-isnt-the-only-financial-law-trump-should-changeSummary: This source suggest that the SOX Act needs more amendments apart from the Dodd-Frank law. The amendment on Dodd-Frank law, according to President Trump is meant to hold down business entities especially the banks. The recent updates in SOX require that business entities maintain efficient internal control systems that can be verified and approved by an outside auditor to reduce fraud. The amendments require the corporates management to identify and disclose specific details concerning conflict of interest that arise from activities revolving around underwriting and placing.

Willey, S., & McClean, M. (2017). Changes in regulatory landscape for corporate finance service providers | White & Case LLP International Law Firm, Global Law Practice. Whitecase.com. February 2017, from https://www.whitecase.com/publications/alert/changes-regulatory-landscape-corporate-finance-service-providersSummary: According to whitecase.com, the SOX changes in regulatory landscape will affect the corporate finance service providers significantly. The amendments made earlier this year are expected to be effective as from January 3rd, 2018 when all corporates will be subject to the new changes in the regulatory landscape.

SECTION 3: USPS NEWS

USPS Rings in the New Year with New Rate Changes. January 2017, from http://www.pitneybowes.com/us/blog/usps-january-2017-rate-changes.htmlSummary: This source expounds on the new rates in the United States Postal Services. The main objective is to express the concern that some people may have regarding the increased charges and how they need to prepare for them. There will be postal rates that will be increasing and some decreasing. An example of the increasing rates include first class mails, collect on deliveries, and return receipts. The decreasing rates include single piece metered letters. The updates were effected in January, 2017.

Postal Services Benefits Reform. (2017). Postal Service Reform Act of 2017. January 2017, from https://oversight.house.gov/wp-content/uploads/2017/01/Summary-of-PSRA-1.27.17-1.pdf

Summary: According to the Postal Service Reform Act of 2017, the health benefit program of the retired members covers all the costs of the members liability within 40 years. It provides a summary of all the programs and reforms that have been introduced such as the FEHBP, which will take effect in January, 2019. This reform secures and guarantees the future of its employees and this is a very competitive advantage over other firms. They are carefully divided into 4 groups to specifically cater for operations, health benefits, personnel as well as contracting procedures.

SECTION 4: USPS COMPETITION IN THE INDUSTRY TREND

How Reforms Could Turn U.S. Postal Service Into Threat for UPS and FedEx. (2017). Trucks.com. March 2017, from https://www.trucks.com/2017/03/06/usps-reforms-threat-fedex-ups/Summary: According to Trucks.com, the reconstructed USPS could attain a whole new position and outclass its competitors such as FedEx and UPS. The objective of this article is to portray the possibility of USPS reforms and updates, leading to better performance thereby resulting to greater results in the industry. The reforms that USPS is taking prove to be a major threat to the private-owned entities. The industry of letter and parcel delivery has been without advancements for the longest time and this necessitates change. Although, the current state of USPS cannot be termed as healthy, its plan is bound to work once effected. The article also reveals that the updates are mostly related to the financial aspect of the organization. This means that the operations might stagnate soon as compared to its competitors whom at the moment, seem to be beneath it.