Using and understanding the SEC's disclosure rules manual

Abstract

AbstractThe Division of Corporation Finance of the Securities and Exchange Commission recently made available to the public its internal Accounting Disclosure Rules Manual which it uses for training and review. The manual contains interpretations and practices that are followed by the SEC staff in administering the disclosure requirements of the securities laws. The Manual does not, however, constitute rules or interpretations that have formally been approved by the Commission. The Manual references its provisions to SEC rules, regulations, and Staff Accounting Bulletins as well as to professional accounting and auditing pronouncements. In addition, it also includes a number of instances referred to as “staffpractice” that cannot be located elsewhere. In this article, some of these staff practices are set forth verbatim. Following the quotations are explanations as to why it was necessary for the staff to codify such previously unwritten rules.