[Federal Register Volume 61, Number 15 (Tuesday, January 23, 1996)]
[Notices]
[Pages 1790-1791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-837]
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SECURITIES AND EXCHANGE COMMISSION
Request for Public Comment
Upon Written Request, Copies Available From: Securities and
Exchange Commission, Office of Filings and Information Services,
Washington, D.C. 20549.
Revision
Regulation S-X
SEC File No. 270-3
OMB Control No. 3235-0009
Regulation S-K
SEC File No. 270-2
OMB Control No. 3235-0071
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (Commission or SEC) is publishing for public comment
proposed amendments to Rule 4-08 of Regulation S-X (17 C.F.R. 210.4-08)
and proposed Item 305 of Regulation S-K (17 C.F.R. 229.305) to clarify
certain disclosure requirements related to derivative and other
financial and commodity instruments, to include additional instruments
within existing disclosure requirements, and to provide alternative
quantitative disclosures regarding the market risk inherent in those
instruments. See Release Nos. 33-7250; 34-36643; IC-21625 (December 28,
1995).
Amendments to Rule 4-08 of Regulation S-X would clarify the current
requirements under generally accepted accounting principles (``GAAP'')
for registrants' disclosures of accounting policies related to
derivative and other financial and commodity instruments, and include
additional instruments within the existing accounting policy
disclosures. This is considered necessary due to the general and
uninformative disclosures currently being received by the Commission
about such policies. Likely respondents are those registrants filing
financial statements under the Securities Act of 1933, the Securities
Exchange Act of 1934, the Public Utility Holding Company Act of 1935,
and the Investment Company Act of 1940. Reporting should occur
annually, with material modifications to the annual information
disclosed in quarterly reports. It is estimated that the proposed
amendments, if adopted, may result in an aggregate additional reporting
burden of 11,000 hours.
Proposed Item 305 of Regulation S-K would require, to the extent
material, quantitative and qualitative disclosures about market risks
associated with derivative and other financial and commodity
instruments. These disclosures are considered necessary to provide
transparency into registrants' use of derivative and other financial
and commodity instruments and the market risks inherent in those
instruments, in order to reduce the number of instances where losses
from such transactions ``surprise'' the securities markets. Likely
respondents are those registrants filing documents under the Securities
Act of 1933, the Securities Exchange Act of 1934, and the Public
Utility Holding Company Act of 1935, for whom the proposed disclosures
would be material to an understanding of their businesses taken as a
whole. Reporting should occur annually, with material modifications to
the annual information disclosed in quarterly reports. It is estimated
that the proposed amendments, if adopted, may result in an aggregate
additional reporting burden of 200,000 hours.
The estimated burden hours would remain unchanged for compliance
with regulation S-X [OMB Number 3235-0009] and Regulation S-K [OMB
Number 3235-0071]. Instead, the estimated burden hours for Commission
forms that require the filing of financial statements prepared in
accordance with regulation S-X and the information required by the
standard disclosure items in Regulation S-K, would be amended to note
any increase in such burdens. These forms would include Form 10-K [OMB
Number 3235-0063] and Form S-1 [OMB Number 3235-0065].
Written comments are invited on: (a) whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
[[Page 1791]]
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
Direct your written comments to Michael E. Bartell, Associate
Executive Director, Office of Information Technology, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Dated: January 5, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-837 Filed 1-23-96; 8:45 am]
BILLING CODE 8010-01-M
