Companies are currently finalizing their 2020 Q2 filings, and, without a doubt, COVID-19 related disclosures are at the forefront of the minds of many external reporting professionals, CFOs, and audit committee members. Regulators and standard-setters are paying close attention to how COVID-19 may impact company disclosures. Recently, the Division of Corporate Finance of the Securities and Exchange Commission (SEC) in March 2020, issued guidance for how companies should assess and disclose the evolving impact of COVID-19 on their operations, financial condition, and risks. The Financial Accounting Standards Board (FASB) has been issuing guidance and holding public meetings to assist companies navigating U.S. GAAP implementation.
Mistakes already Commented by the SEC
While companies are monitoring and benchmarking the COVID-19 related disclosures of their peers, it may also be prudent to follow what the SEC is calling out companies for on their COVID-19 disclosures to avoid making similar ‘mistakes.’
For instance, the SEC has been seeking more detailed information/disclosures from companies developing possible COVID-19 related vaccines:
The SEC has also referenced the CF Disclosure Guidance: Topic No. 9 (March 25, 2020) and requested more disclosures surrounding COVID-19’s impact on this company’s operations,
Questions have also been raised about this company’s COVID-19 discussions in the risk factors section:
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These are just a few examples of the types of questions the SEC is asking. The SEC is actively monitoring COVID-19 related disclosures. You need to follow and get real-time notifications of these COVID-19 related SEC Comment Letters, so you're not caught off-guard if the SEC comes knocking on your virtual door.
For more information, please visit idaciti and download the datasheet to see how idaciti's modern research platform with real-time processing and 24/7 disclosure monitoring can save you time and effort. The email notifications include only the newly filed disclosures based on "your" criteria. As a result, you receive only relevant real-time information delivered to your inbox and never miss an important filing.