SEC report provides framework for disclosure reform

first_img Regulators propose slimming corporate disclosure Related news The report, which was mandated by the JOBS Act, recommends undertaking a comprehensive review of the existing disclosure requirements in order to develop specific recommendations for revising them. “Although a comprehensive approach would likely be a longer-term project involving significant staff resources across the commission, the staff believes that a comprehensive approach would be able to achieve the dual goals of streamlining requirements for companies, including emerging growth companies, and focusing on useful and material information for investors,” it says . “This report provides a framework for disclosure reform,” said Mary Jo White, SEC chairwoman. “As a next step, I have directed the staff to develop specific recommendations for updating the rules that dictate what a company must disclose in its filings. We will seek input from companies about how we can make our disclosure rules work better for them and will solicit the views of investors about what type of information they want and how it can be best presented. The ultimate objective is for the commission to improve the disclosure regime for both companies and investors.” The SEC says that its Office of the Chief Accountant will coordinate with the accounting standards setters, the Financial Accounting Standards Board (FASB), to identify ways to improve the effectiveness of disclosure in financial statements and to minimize duplication with other existing disclosure requirements. “Updating our rules is only one step – albeit an important one – in improving company disclosures,” said Keith Higgins, director of the SEC’s division of corporation finance. “For their part, companies should examine how they can improve the quality and effectiveness of their disclosures and how our rules can be improved to facilitate clear and effective communications to investors. Better disclosure benefits everyone in the marketplace, and we plan to work with companies and investors to achieve this common goal.” Don’t believe the hype: BCSC proposes new rules for stock promoters The U.S. Securities and Exchange Commission (SEC) is looking to overhaul the disclosure rules for public companies. The SEC submitted a report to Congress today that provides an overview of its disclosure rules for U.S. public companies. CSA sets rules on non-GAAP financial reportingcenter_img James Langton Share this article and your comments with peers on social media Keywords DisclosureCompanies Securities and Exchange Commission Facebook LinkedIn Twitterlast_img read more