{"id":1722,"date":"2020-04-09T09:48:12","date_gmt":"2020-04-09T13:48:12","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=1722"},"modified":"2020-04-09T09:48:12","modified_gmt":"2020-04-09T13:48:12","slug":"sec-chair-and-corp-fin-director-issue-statement-about-covid-19-disclosure","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/sec-chair-and-corp-fin-director-issue-statement-about-covid-19-disclosure\/","title":{"rendered":"SEC Chair and Corp Fin Director Issue Statement About COVID-19 Disclosure"},"content":{"rendered":"

On April 8, 2020, SEC Chairman Jay Clayton and CorpFin Director William Hinman issued a Public Statement titled \u201cThe Importance of Disclosure \u2013 For Investors, Markets and Our Fight Against COVID-19<\/a>.\u201d<\/p>\n

The Statement<\/a> provides valuable thoughts, advice and guidance as we approach quarter-end earnings releases and reporting.\u00a0 In previous statements and guidance about the impact of COVID-19 the SEC has consistently made the point that in a period of such dramatic disruption and uncertainty, providing investors information about management\u2019s actions and plans to address this disruption is important, despite the uncertainty involved.<\/p>\n

This Statement builds on this theme.\u00a0 Chairman Clayton and Director Hinman say:<\/p>\n

\u201cWe urge companies to provide as much information as is practicable regarding their current financial and operating status, as well as their future operational and financial planning.\u201d<\/p>\n

The Statement includes an extensive series of observations about the current environment and its uncertainties.\u00a0 It then makes a number of disclosure related requests, including:<\/p>\n

\u201cCompany disclosures should reflect this state of affairs and outlook and, in particular, respond to investor interest in:<\/p>\n

(1) where the company stands today, operationally and financially,<\/p>\n

(2) how the company\u2019s COVID-19 response, including its efforts to protect the health and well-being of its workforce and its customers, is progressing, and<\/p>\n

(3) how its operations and financial condition may change as all our efforts to fight COVID-19 progress.\u00a0 Historical information may be relatively less significant.\u201d<\/p>\n

The Statement also enumerates important disclosure considerations in the current environment, including forward looking information issues.\u00a0 The topics addressed are:<\/p>\n