SEC Proposes Amendments to Modernize MD&A and Certain Other Financial Disclosure Requirements and Issues Guidance on KPIs and Metrics

The SEC has issued a proposed rule and guidance as part of its efforts to “modernize, simplify, and enhance certain financial disclosure requirements in Regulation S-K.”

The proposed rule’s amendments would reduce “duplicative disclosure and [focus] on material information in order to improve these disclosures for investors and simplify compliance efforts for registrants.”

The guidance addresses “key performance indicators and metrics in Management’s Discussion and Analysis of Financial Condition and Results of Operations (‘MD&A’).”

Comments on the proposed amendments are due 60 days after the date of their publication in the Federal Register. The guidance will become effective on the date of its publication in the Federal Register. For more information, see the press release on the SEC’s Web site.