§7261 Disclosures in Periodic Reports

Summary

The Commission must issue final rules no later than 180 days after July 30, 2002, so that any pro forma financial information in periodic reports, other filings, public disclosures, or press releases is not false or missing important facts that would make it misleading, and so it is linked back to the issuer’s financial condition and results under generally accepted accounting principles. Within 1 year after the effective date of the off‑balance sheet disclosure rules required by section 78m(j), the Commission must study issuer filings to measure the size and nature of off‑balance sheet transactions (including assets, liabilities, leases, losses, and use of special purpose entities) and whether generally accepted accounting principles show their economics clearly. Within 6 months after finishing that study, the Commission must send a report to the President, the Senate Committee on Banking, Housing, and Urban Affairs, and the House Committee on Financial Services with estimates, findings on special purpose entities and consolidation, and any recommended improvements to disclosure and transparency.