"Issuers Should Review Risk Factor Disclosures Amid US–China Tensions” from Morgan Lewis advises companies to review their exposure to the China market and consider China-specific risk factors along with other relevant disclosures (e.g., financials, MD&A, internal controls, board risk oversight) for their forthcoming Form 10-K. More specifically, in addition to outlining current and likely ongoing (if not escalated) tensions in US-China relations that could impact the business, the firm suggests companies look to the Corp Fin’s COVID-19 disclosure guidance (here and here) (we reported on here and here, respectively) and its sample comment letter on the Russia/Ukraine conflict (we reported on here) as an analytical framework for disclosure of China-related risks. The memo includes instructive lists of China-specific risks for companies to consider for risk factor and other disclosure.
“Preparing Your 2022 Form 10-K: A Summary of Recent Key Disclosure Developments, Priorities, and Trends” from Sidley Austin provides an overview of changes to Form 10-K prompted by recent amendments to SEC rules, which is supplemented by a summary checklist in Appendix A, and considerations for other key disclosure topics including macroeconomic and geopolitical issues, COVID-19, climate risk, cybersecurity, LIBOR, and human capital management. Where relevant, the memo links to underlying regulatory resource and the firm’s more detailed guidance/commentary.
Access additional resources on our Financial Reporting, Geopolitical Risk, Climate Risk & Disclosure, Human Capital, COVID-19, Sustainability and other relevant resource pages.
This post first appeared in the weekly Society Alert!