The more things change, the more they stay the same. As a new presidential administration shifts the landscape of corporate regulations, securities litigation remains on the rise.
Panelists from Davis Graham & Stubbs previewed these and other pressing topics facing corporations at the start of 2018. DGS presented its 16th Annual Public Company Update to an audience of attorneys, business leaders and accounting professionals Thursday morning at the Denver Four Seasons Hotel.
DGS attorneys started off the morning by breaking down the Securities and Exchange Commission’s proposed updates to Regulation S-K. In October, the SEC issued a proposed rule to modernize and simplify disclosure requirements as mandated by the Fixing America’s Surface Transportation, or FAST, Act. The rules suggest tweaks to how companies need to handle a range of disclosures, from Description of Property to Material Contracts.
Perhaps the most significant fix proposed to Regulation S-K concerns the management discussion and analysis, or MD&A, section of companies’ 10-K reports, according to DGS co-managing partner Kristin Lentz. Companies currently have to provide year-over-year comparisons for the current year and the two previous; the rule would make it so companies need only compare the current year and the year prior.