The SEC Wants To Know: How Would You Reimagine Financial Reporting? In April, the SEC took the next step in its disclosure effectiveness initiative. It issued a concept release to request comments on business and financial disclosures required by Regulation S-K. That’s the SEC rule that affects the form and content of the chief raw materials of financial analysis: the 10-Ks and 10-Qs.
Regulation S-K itself is a mammoth piece of regulation, and the concept release that might influence its redefinition is no pamphlet, either. Checking in at 341 pages, the concept release addresses every facet of the requirements for the SEC’s financial reporting package – and requests feedback from issuers and investors through 340 questions. The concept release won’t have a near-term direct effect on the financial reporting package. It’s almost like the SEC is trying to gather opinions and views from a consumer focus group before going ahead with any new proposed regulation.
The bulk of this report is dedicated to summarizing the parts that should be near and dear to investors. They’ll have a say in the future of financial reporting, but only if they respond to the concept release. If there’s something that irks you about SEC reporting, now is the time to let the SEC know how they can fix it in the next iteration of Regulation S-K.
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