September 22, 2016
Thomson Reuters Special Report Offers SEC Reporting Guidance for U.S. Companies Following Brexit
NEW YORK – Thomson Reuters has released a special report addressing the Securities and Exchange Commission’s disclosure obligations and other related financial reporting issues arising from Brexit for U.S.-based public companies with operations in the UK or Europe.
The Thomson Reuters Checkpoint report, SEC Reporting Obligations Arising From the UK’s Brexit Vote, looks at the two financial disclosure areas that are expected to require the greatest amount of attention – the risk factor and management discussion and analysis (MD&A) sections of annual and quarterly reporting forms. It also includes some of the accounting and financial reporting topics that professionals should take into account when evaluating both the immediate and future impact of Brexit.
“At this early stage, many U.S. entities with significant exposure to the UK or EU will not be able to assess the ultimate financial impact of Brexit because the exact terms of withdrawal have yet to be determined,” said Allan B. Afterman, CPA, Ph.D., a Thomson Reuters Checkpoint contributor and author of the report. “This report should help U.S. registrants evaluate the circumstances that are likely to cause deviations from past performance and thus may need to be disclosed in MD&A.”
Included in the report are excerpts from recent Form 10-K and Form 10-Q filings that illustrate how the initial anticipated effects of Brexit are being addressed in MD&A and risk factor disclosures in SEC filings. The report also identifies areas of accounting and financial reporting that may need to be addressed, including the use of fair value measurements, impairment of investments and other assets, and hedging.
The free report is available for download at https://tax.thomsonreuters.com/checkpoint/SEC-Reporting-Brexit.
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