[Federal Register Volume 61, Number 15 (Tuesday, January 23, 1996)]
[Notices]
[Pages 1790-1791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-837]



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SECURITIES AND EXCHANGE COMMISSION


Request for Public Comment

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, D.C. 20549.

Revision

Regulation S-X
    SEC File No. 270-3
    OMB Control No. 3235-0009
Regulation S-K
    SEC File No. 270-2
    OMB Control No. 3235-0071

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (Commission or SEC) is publishing for public comment 
proposed amendments to Rule 4-08 of Regulation S-X (17 C.F.R. 210.4-08) 
and proposed Item 305 of Regulation S-K (17 C.F.R. 229.305) to clarify 
certain disclosure requirements related to derivative and other 
financial and commodity instruments, to include additional instruments 
within existing disclosure requirements, and to provide alternative 
quantitative disclosures regarding the market risk inherent in those 
instruments. See Release Nos. 33-7250; 34-36643; IC-21625 (December 28, 
1995).
    Amendments to Rule 4-08 of Regulation S-X would clarify the current 
requirements under generally accepted accounting principles (``GAAP'') 
for registrants' disclosures of accounting policies related to 
derivative and other financial and commodity instruments, and include 
additional instruments within the existing accounting policy 
disclosures. This is considered necessary due to the general and 
uninformative disclosures currently being received by the Commission 
about such policies. Likely respondents are those registrants filing 
financial statements under the Securities Act of 1933, the Securities 
Exchange Act of 1934, the Public Utility Holding Company Act of 1935, 
and the Investment Company Act of 1940. Reporting should occur 
annually, with material modifications to the annual information 
disclosed in quarterly reports. It is estimated that the proposed 
amendments, if adopted, may result in an aggregate additional reporting 
burden of 11,000 hours.
    Proposed Item 305 of Regulation S-K would require, to the extent 
material, quantitative and qualitative disclosures about market risks 
associated with derivative and other financial and commodity 
instruments. These disclosures are considered necessary to provide 
transparency into registrants' use of derivative and other financial 
and commodity instruments and the market risks inherent in those 
instruments, in order to reduce the number of instances where losses 
from such transactions ``surprise'' the securities markets. Likely 
respondents are those registrants filing documents under the Securities 
Act of 1933, the Securities Exchange Act of 1934, and the Public 
Utility Holding Company Act of 1935, for whom the proposed disclosures 
would be material to an understanding of their businesses taken as a 
whole. Reporting should occur annually, with material modifications to 
the annual information disclosed in quarterly reports. It is estimated 
that the proposed amendments, if adopted, may result in an aggregate 
additional reporting burden of 200,000 hours.
    The estimated burden hours would remain unchanged for compliance 
with regulation S-X [OMB Number 3235-0009] and Regulation S-K [OMB 
Number 3235-0071]. Instead, the estimated burden hours for Commission 
forms that require the filing of financial statements prepared in 
accordance with regulation S-X and the information required by the 
standard disclosure items in Regulation S-K, would be amended to note 
any increase in such burdens. These forms would include Form 10-K [OMB 
Number 3235-0063] and Form S-1 [OMB Number 3235-0065].
    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information collected; 
and (d) ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 

[[Page 1791]]
techniques or other forms of information technology. Consideration will 
be given to comments and suggestions submitted in writing within 60 
days of this publication.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.

    Dated: January 5, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-837 Filed 1-23-96; 8:45 am]
BILLING CODE 8010-01-M