Merryl Werber, senior vice president and chief accounting officer at Kilroy Realty Corp. (NYSE: KRC), sat down for a video interview during Nareit’s REITwise: 2025 Law, Accounting & Finance Conference in San Antonio on March 25-27.
Werber discussed evolving regulatory expectations from the SEC and PCAOB and how they influenced corporate reporting standards. Although Kilroy has not been directly impacted by SEC inquiries, Werber acknowledged the agency’s increasing focus on ensuring consistency between public filings and external communications like earnings calls and investor presentations.
“The SEC is just looking for consistency and making sure people are telling the same story to investors that they are in their SEC filings,” Werber explained. She also reflected on the evolving segment reporting standard, noting that Kilroy, as a single-segment company, faced minimal impact. However, she observed that other firms saw significant last-minute changes in disclosures, with auditors pushing for adjustments just weeks before 10-K filings.
Werber also highlighted the deepening impact of PCAOB inspections on audit processes. She noted a noticeable uptick in auditor documentation demands over the past five years, particularly concerning significant judgments and estimates.
Werber advised companies to be cautious with non-GAAP measures and always reconcile them thoroughly to avoid SEC scrutiny as a best practice: “If you have a question in your mind…reconcile it,” she emphasized.