Concept Release-Disclosure Effectiveness Initiative (it is focus scaled disclosure, interim report SEC reporting Securities regulations

1. CONCEPTRELEASE: BUSINESSAND FINANCIALDISCLOSUREREQUIREDBY REGULATION
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Personal comments
264 Yes,failure totimelyfile10-Kand10-Q couldresultinthe disqualificationforusingthe scaleddisclosure.
The time periodisa year to cure thisexclusionandregainthisqualification
265 Actuallypublicfloatcriteriaisthe onlycriteriakeepingpubliccompaniesfrominflatingemployee atwill
compensationpackage onpaper
266 Scaleddisclosure requirements are notcalledtohelpsome largercompanies,if SECwantstoreduce larger
companiescompliance costs,theywill reduce all of themtheircompliance andadministrativecosts.
267 Informationasymmetriesbetweeninvestorsandmanagersof new companiesare the highestbecausethere
ishistorical dataof the companies. Thissometimeshasnothingtodowiththe size of the companies.
268 Yes,there are disclosure requirementsforwhichscalingisnotappropriate
269 If an average investorneedsalotof informationaboutthe companyinorderto make an informed
investmentandvotingdecisions.
270 MD&A is veryimportantforthe SRC because of the discussionaboutrevenues,liquidityandothers. Market
price isnot that necessaryforSRC,the more data the markethas aboutthe company the more reliable the
value itassignstothe company. Whenitcomes toSRC, it ispossible thatthere isnotenoughdatato relyon.
Asymmetricinformationbalancesinfavorof the manager. That meanssometimesthe marketundervalues
the companybecause of itsscaleddisclosure. But,the companycan reduce compliance andadministrative
costs thanksto scaleddisclosures
271 SEC shouldconsiderscalingitem701for the SRC. Item404 needstobe revisitedtorestore relatedparty
disclosure. SRCanditsmanagersacts too much andquestionablywiththeirrelatedparties
272 EGC can take advantage of the scaleddisclosure requirementscurrentlyavailabletoSRCfor eliminationof
backlogdisclosure butwe cannoteliminate tabularrepresentationof contractual obligation,MD&A
273 No,thisreorganizationandseparationof RegS-Krelated toSRCwill notprovide new tool tothe registrant
and investorhelpingthemtounderstandbetterthe rulesor/anddisclosure ortomake investmentand
votingdecision
274 Definitely,we shouldnotaddunnecessaryexpensive dataandpagesnobodyuses
275 Basedon gooddefinitionof materiality,all immaterial informationshouldnotbe disclosed
276 Sophisticatedinvestorswillbe more affectedbyfurtherscalingbecause theypreferalotof data about the
companyinorder to make an informedinvestmentandvotingdecision
277 A goodscaleddisclosure’scostsandbenefitsanalysiswill indicate thatSECscaleddisclosure reduce
compliance coststothe registrants. Scalingadditional itemsrequirementswillreduce compliance coststo
the registrantbutwithlessinformationtothe investingpublic,the marketwillundervaluethe registrant.
Like the 3rd
worldcompany,itispossible thatthe registrantshareholderwill notbe maximized. Canthey
disclose more voluntarily?
278 Yes,the investingpublicbenefits10-Qreport. Bigbenefitisthatitprovidesgreaterconfidence andregular
up to date informationtoinvestorswhoneedreliance totrade sharesbetweentermsforwedding,funeral,
donationto giftedchildren,… Quarterlyreportishere to stay
279 Because of consistencyandcomparability,the reportingrequirementsshouldbe the same forall typesof
registrants. Thisquarterlyreportingrequirementsshould NOTexclude SRC
280 No,all categoriesof registrantshouldfilequarterlyfinancial report,Iwill findoutthe exceptiongivento
financial servercompanies
281 Filingamonthlyreportwill be tooexpensiveintermof compliance andadministrative coststoanytype of
registrants

2. 282 May be the 1st
quarterneedssome kindof scaledorabbreviateddisclosurebecause of the Sch14A report
usingsome data of the 1st
quarter. SEC shouldeliminate the requirementof informationprovidedbyPre and
Def 14A,… SRC shouldcomplywithscaleddisclosure.
283 Quarterlyreportingobligationplaysabigrole inthe strategicgoal and managementof the registrant. Ido
not believe thatquarterlyreportingobligationhurtslongtermdecisionmakingof the registrantbecause its
informationhelpsthe registrant toassessandmonitoritslongtermprojects
284 Both sophisticatedinvestorsandreasonable investorswill value more 10-Qreportas verygoodtoolsfor
investmentandvotingdecision
285 I believeinthe quarterreportasgood assetto preserve forregularvaluationof companies,itsprojectsand
future plans. If we lose thistool,itwill increase low confidence inthe marketvaluationandasymmetricof
information;itwill reduce thisfrequentevaluationtool of the managementandregistrantperformanceand
interestinthe registrant’smanagement. Formanagement,itisverynecessarytoknow whatyourinvestors
thinkaboutyour managementstyle andscore regularly;dotheyhave towait for a year? Too long,investors
will lose interestsinregistrantsactivities