Nasdaq Comments on SEC Proposal to Modernize Certain Financial Disclosure Requirements
On April 28, 2020, Nasdaq submitted a comment letter supporting the U.S. Securities and Exchange Commission’s (SEC) proposal to modernize the Regulation S-K disclosure requirements regarding certain financial information and MD&A disclosures for issuers. The proposed amendments would eliminate duplicative disclosure requirements and update other disclosure requirements by applying a “principles-based” approach.
Nasdaq commended the SEC for its ongoing efforts to modernize the disclosure requirements for public companies and reiterated its support for a principles-based disclosure regime, guided by a materiality standard, that will benefit both issuers and investors. Such principles-based disclosure requirements would allow an issuer the flexibility to provide more tailored information about its specific financial condition. Nasdaq also recommends that the SEC make it optional for issuers to disclose their financial information using eXtensible Business Reporting Language (XBRL) format.
The SEC’s proposals are consistent with Nasdaq’s blueprint to revitalize the U.S. capital markets, which advocates for simplifying the disclosure process by reducing complexity while also preserving investor protection.
Proposed Amendments to Modernize Certain Financial Disclosure Requirements
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