Disclosure of Accounting Policies for Derivative Financial Instruments and Derivative Commodity Instruments
OGC-97-20: Published: Feb 25, 1997. Publicly Released: Feb 25, 1997.
Pursuant to a legislative requirement, GAO reviewed the Securities and Exchange Commission's (SEC) new rule on disclosure of accounting policies for derivative financial instruments and derivative commodity instruments. GAO noted that: (1) the rule would amend existing rules and forms for domestic and foreign issuers to clarify and expand disclosure requirements for market risk sensitive instruments; (2) the amendments would also require enhanced disclosure of accounting policies for derivative financial instruments and derivative commodity instruments in the footnotes to the financial statements; and (3) SEC complied with applicable requirements in promulgating the rule.