Companies still grapple with safe-harbor issues; corporations should remain wary of making predictions despite Reform Act protection
Article Abstract:
The corporate reports filed with the SEC must mention the company's historical performanceand also known trends which the company reasonably expected to make future performance differ markedly from the past. Interim data and 'soft' information to help investors also often finds inclusion. Fear of liability often limits this material, and the Private Securities Litigation Reform Act of 1995 addressed this concern by providing a safe harbor for 'forward-looking statements' prepared according to generally accepted accounting principles. Reluctance to make predictions is wise in spite of Reform Act protection.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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Position statement clarifies liability disclosures; the AICPA has issued guidance for estimating environmental liabilities for public disclosure
Article Abstract:
The American Institute of Certified Public Accountants (AICPA) has issued Statement of Position (SOP) 96-1, the accounting profession's most recent statement clarifying when an environmental liability should be publicly disclosed and what information should be included. The AICPA's statements adds to SEC rules on the subject. The SOP advises that environmental remediation liabilities are to be determined independently from any possible claim for recovery, and that recognition of assets relating to such recovery should only take place when the realization of a claim for recovery is probable.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Cyberspace offers a new medium for SEC filings; companies can use the Internet in a variety of ways, but not as a substitute for full disclosure
Article Abstract:
The Securities and Exchange Commission supports companies' use of the Internet to disclose information but caveats abound. While the SEC now takes most of its filings electronically, and requires that format by May 1996, that medium does not suffice for distributing information to investors. The Internet is a quick and efficient way to reach many people, but employees must use caution in posting information there. Security is not guaranteed, and online communications create a false and dangerous sense of informality.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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