Seemingly responsive to or consistent with SEC Chair Clayton's call for increased disclosure of Libor phase-out-related risks, the WSJ's "Companies Give Investors a Peek at Life After Libor" noted recent Form 10-K Libor risk disclosures from McCormick & Co., Mondelez, and American Express.
EY Americas capital markets advisory leader Roy Choudhury commented: "Companies must look at three areas—borrowing, derivatives and investments—when assessing the scope of their exposure. They must also consider any implications for hedging and hedge accounting, as well as how the risk varies by currency and jurisdiction. This is not just a U.S. dollar problem, this is a euro problem, really all of the major currencies."
See also this Cooley post: "Companies begin to air LIBOR phase-out risks/SOFR volatility"; these prior reports: "LIBOR Phase-Out Risk Considerations," "Reminder: SEC Focused on Cyber, Brexit, LIBOR-Related Disclosure," and "SEC Looking for Better Brexit/Cyber/Libor-Related Risk Disclosure"; and additional information & resources on our Financial Reporting page.
This post first appeared in the weekly Society Alert!