Pitfalls Of 'Trends And Uncertainties' Disclosure

Law360, New York (September 14, 2012, 12:31 PM EDT) -- Item 303 of Regulation S-K requires the disclosure, in a company’s management discussion and analysis, of “any known trends or uncertainties … that the registrant reasonably expects will have a material favorable or unfavorable impact on net sales or revenues or income from continuing operations.”

A company’s failure to correctly anticipate which known “trends or uncertainties” ultimately will have a material impact and make corresponding disclosures may give rise to litigation in which nondisclosure will be judged in hindsight and with the benefit of knowledge of...
To view the full article, register now.