FEI Invites Comments On SEC Selective Disclosure Proposals.FEI's Committee on Corporate Reporting (CCR 1. CCR - condition code register. 2. CCR - (Database) concurrency control and recovery. ) is preparing position letters in response to the Securities and Exchange Commission's proposed new rules regarding selective disclosure, and invites comments. The SEC will examine the selective disclosure by issuers of material nonpublic information Nonpublic information Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading. ; whether insider trading liability depends on a trader's "use" or "knowing possession" of material nonpublic information; and when the breach of a family or other non-business relationship may give rise to liability under the misappropriation misappropriation n. the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose, particularly by a public official, a trustee of a trust, an executor or administrator of a dead person's estate, or by any theory of insider trading. The proposals are designed to promote the full and fair disclosure of information by issuers, and to clarify and enhance existing prohibitions against insider trading. Public comments are due on or before March 29, 2000. In addition, the SEC is proposing to reposition certain schedule information currently required under Rule 12-09 of Regulation S-X S-X Sex within a new Item 302(c) of Regulation S-K to specify the disclosures to be provided by registrants concerning changes in valuation and loss accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. accounts. It also proposes to add another new Item 302(d) of Regulation S-K to elicit certain information concerning tangible and intangible long-lived assets and related accumulated depreciation accumulated depreciation The total amount of depreciation that has been recorded for an asset since its date of acquisition. For example, a computer with a 5-year estimated life that was purchased for $2,000 would have accumulated depreciation of $800 [( , depletion and amortization. A new Item 8C also would be added to the recently revised Form 20-F. The rule proposals are intended to provide investors with more transparent, better detailed disclosures concerning changes in valuation and loss accrual accounts and in the underlying accounting assumptions, and more detailed information to assess the effects of useful lives assigned to long-lived assets. Comments should be received by April 17, 2000. Send your comment letters to Susan Koski-Grafer, FEI's vice president of technical activities, at skoski-grafer@fei.org. |
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