SEC Issues Statement on the Importance of Disclosures About the Impact of COVID-19

The SEC has posted to its Web site a public statement by SEC Chairman Jay Clayton and SEC Division of Corporation Finance Director William Hinman emphasizing the importance of providing financial statement disclosures on the impact of COVID-19, particularly forward-looking disclosures. The statement notes that companies should “provide as much information as is practicable regarding their current financial and operating status, as well as their future operational and financial planning.” It also stresses that there is “intense investor interest in company-specific operational and financial status and plans for addressing the effects of COVID-19.”