COVID-19 Highlights Need to Reset SEC Proposal on MD&A Disclosures

The comment interval for the Securities and Trade Commission’s proposed rule, Management’s Discussion and Evaluation, Selected Financial Data, and Supplementary Financial Information shut this week, and buyers weighed in.

In broad strokes, the proposal seeks to minimize the “burden” on preparers of offering information and facts, these kinds of as by eradicating the contractual obligations table and chosen economic info and offering flexibility for registrants in the quarters they choose to evaluate final results. The matter is, the stress is not remaining removed, just shifted from preparers to buyers, and it is additional than a shift — there is a internet information and facts reduction to buyers. Investors, not management, fork out for these disclosures, and they want them to keep on being.

CFA Institute, alongside with the Council of Institutional Investors, weighed in with a comment letter and mentioned that removal of these kinds of information and facts is

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