What is Item 303 Regulation SK?

Trends or Uncertainties Impacting Continuing Operations. Current Item 303(a)(3)(ii) requires a company to describe any known trends or uncertainties that have had or that the company reasonably expects will have a material impact (favorable or unfavorable) on net sales or revenues or income from continuing operations.

What change has the SEC proposed to make to 303 MD&A of Regulation SK?

The SEC adopted a new Item 303(a) largely as proposed to succinctly state the purposes of MD&A by incorporating a portion of the substance of Instruction 1, as well as much of the substance of Instructions 2 and 3, into the item.

Is the contractual obligations table still required?

Registrants are no longer required to provide the contractual obligations table in MD&A, but disclosure in MD&A of the company’s material cash requirements is mandatory. Registrants no longer need to disclose off–balance sheet arrangements under a separately captioned section.

What is MD&A?

Management discussion and analysis (MD&A) is a section within a company’s annual report or quarterly filing where executives analyze the company’s performance. The section can also include a discussion of compliance, risks, and future plans, such as goals and new projects.

What is one of the reasons the SEC is proposing changes related to Management’s Discussion and Analysis MD&A )?

The proposed change is intended to enhance disclosure of a registrant’s ability to generate cash and meet its material cash requirements.

What is SEC amendment?

SEC Adopts Amendments to Modernize and Enhance Management’s Discussion and Analysis and other Financial Disclosures. FOR IMMEDIATE RELEASE. 2020-290.

Under what conditions is disclosure about risks and uncertainty pertaining to concentrations required?

For the categories of current vulnerabilities due to certain concentrations and the government environment, disclosures should be required when the government determines that it is at least reasonably possible that an event associated with the risk or uncertainty will occur within 12 months of the financial statement …