Latest from The SEC Institute Blog - Page 2

In this unprecedented period of disruption in our lives and our businesses, it is crucially important to keep investors informed.  To help you in this regard, this post is a reminder of the on-demand content we have at SEC Institute ready to assist you. Our on-demand version of the SEC Reporting and Practice Skills Workshop for Lawyers, while primarily for lawyers, offers financial reporting professionals helpful segments on MD&A and 1934 Act reporting. You…
In the last several days the SEC has added to and updated its guidance about disclosures surrounding COVID-19 disruption and uncertainty and updated its pronouncements about filing and related relief.  These developments include: June 23, 2020 – CorpFin Release of Disclosure Guidance: Topic 9A – Coronavirus (COVID-19) — Disclosure Considerations Regarding Operations, Liquidity, and Capital Resources June 23, 2020 – Statement on the Continued Importance of High-Quality Financial Reporting for Investors in Light of COVID-19
In this series of posts we are exploring examples of COVID-19’s impact on Form 10-Q disclosures for the first calendar quarter of 2020.  This fifth post draws examples from Clorox’s Form 10-Q for the third quarter, which ended on March 31, 2020. Clorox is an example of a company that has seen both positive and negative impacts from the pandemic, with the positive impact more or less outweighing the negative impact. In their Form 10-Q…
In this series of posts we are exploring examples of COVID-19’s impact on Form 10-Q disclosures for the first quarter of 2020.  This fourth post draws examples from Gap’s  Form 10-Q for their first quarter ended May 2, 2020. Gap, as do many retailers, has a January fiscal year-end.  As a result, their first quarter 10-Q includes more of the period where COVID-19 is disrupting their business. Gap’s financial statements present the facts surrounding the…
On June 23, 2020, in advance of quarter-two 2020 reporting, the CorpFin Staff issued Disclosure Guidance Topic 9A – Coronavirus (COVID-19) — Disclosure Considerations Regarding Operations, Liquidity, and Capital Resources to provide “additional views of the Division of Corporation Finance regarding operations, liquidity, and capital resources disclosures companies should consider with respect to business and market disruptions related to COVID-19”.  The new Disclosure Guidance Topic supplements Topic 9, which was issued in March 2020.…
On June 18, 2020, Alyson Claybaugh from Intelligize and George Wilson from SEC Institute are co-presenting a webinar for  the SEC Professionals Group about the SEC’s Disclosure Modernization and Simplification process and COVID-19 related disclosure challenges.  There is no cost for the program which also provides one hour of CPE credit. You can learn more about the webinar and the SEC Professionals Group here, including the special events they organize for members such…
In this series of posts we are exploring examples of COVID-19’s impact on Form 10-Q disclosures for the first quarter of 2020.  This third post draws examples from McDonald’s Form 10-Q for their first quarter ended March 31, 2020. In our earlier examples we saw two different approaches:             Starbucks, who put all COVID-19 disclosures in a single footnote, and             Alphabet, who included disclosures in individual notes. McDonald’s has included disclosures in individual notes…
Despite the disruption caused by COVID-19, the SEC has continued to move forward with its disclosure effectiveness program.  Along with its Final Rules in March which amended the definition of accelerated filerand the requirements of guarantor/guarantee financial statements, the SEC has now updated its guidance for information about business acquisitions and dispositions. On May 20, 2020, the SEC adopted a Final Rule updating the 30-year-old requirements for financial statements and proforma information about…
In our last post we started a series to explore examples of disclosures companies have made to address issues raised by COVID-19 in their first quarter 2020 Form 10-Q’s. This second example is from Alphabet’s Form 10-Q for the quarter ended March 31, 2020.  Unlike Starbucks, who put all their COVID-19 related financial statement disclosures in one footnote, Alphabet included disclosure as appropriate in relevant footnotes. First, here is an addition Alphabet made in their…