[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Notices]
[Pages 13893-13894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7535]



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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

 Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
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'') has submitted to the Office of Management 
and Budget proposed amendments to Rule 4-08 of Regulation S-X (17 CFR 
210.4-08) and proposed Item 305 of Regulation S-K (17 CFR 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.
    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].

[[Page 13894]]

    General comments regarding the estimated burden hours should be 
directed to the Desk Officer for the Securities and Exchange Commission 
at the address below. Any comments concerning the accuracy of the 
estimated average burden hours for compliance with Commission rules and 
forms should be directed to Michael E. Bartell, Associate Executive 
Director, Office of Information Technology, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549 and Desk 
Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 3208, New Executive Office Building, Washington, D.C. 20503.

    Dated: March 20, 1996.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-7535 Filed 3-27-96; 8:45 am]
BILLING CODE 8010-01-M