Disclosure Effectiveness Initiative all 340 comments, ehre Securities regulation SEC reporting

1. 1 | ResearchconductedbyArthurMboue
CONCEPT RELEASE: BUSINESSAND FINANCIALDISCLOSURE REQUIRED BY REGULATION
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DISCLOSURE FRAMEWORK
1 SEC shouldconsiderincludingasunsetprovisionsinthe new disclosures. Itmustbe evaluatedbasedonthe
complexity,the size of the changesandimpacton the disclosure. Thisreview shouldbe basedonindividual
itemswithoutsunshine meetinginvolvement
2 The advantage isthat the staff will make sure thatthe requiredchange isimplementable. The problemwith
the processis thatit may require more waitingtime. Thatsaid,thisprocessisinthe bestinterestof
commonalityinthe disclosurepractice and comparabilityamongregistrants
3 Registrantsandinvestorswillnotlike thislongprocess,butthe bottomline isthatinvestorswillbe servedat
the end. There are a lot of costs relatedtoimplementation,uncertainty anddelayedrisktakingwill occur
withthe use of sunsetprovisions
4 The inputof staff isverynecessaryinthe overall strategythe commissionhastoapprove inorderto land
softlywiththisprocessandnewdisclosure. Torepeatmyself,the staff studywill bringmore lights tothe
type of registrantsandits investorsreadyfornew rulesandwhen. The staff studywill be agoodinputif it
takesintoaccounts the practical sense of thisplannedadoptionprocesswhileexaminingregistrantsand
investors’concernsforpossible incremental implementation
5 A committee composedof representativesof investingpublicexpertsandstaff expertscanmeet,discussand
provide some recommendationtothe commissionrelatedtothisprojecttodeal withthe proliferationof
technologywhile providingtothe investing publicatransparentandlessasymmetricinformationdisclosure
6 There isnothingwrongwiththe actual system, whatwe have todo isto revisitsome thresholdsbecause
some are outdatedand some needstotake intoconsiderationthe size of the organization. Also,the
materialitydefinitiondoesnotneedanychange
7 We shouldbalance presentingrequirementsbyinsertingindustrybasedprincipledisclosure requirementin
orderto preserve the benefitsof prescriptive requirements,commonalitydisclosure andcomparability
amongregistrants
8 The advantage of the principle basedapproachisthatthisdisclosure canfocusonwhat isspecificonthat
organization. Itsdisadvantage isthatthe managementcan use itsdiscretiontocamouflage baddata. In
addition,there isnotcommonalityinthe disclosure. There isreputationalcostof the principle based
approach because sophisticatedinvestors cannottrustthe disclosure withoutreservation. Atthe same
token,registrantwill alwayscomplaintaboutthe prescriptive basedapproachshiftingcontrol from
managementtoregulators
9 Registrantsdonotthinkthat it isdifficultbecausewhentheyare unsure,theycanrelyontheirpowerto
disclose anythingintheirfavor. Idon’tbelieve thatvoluntarydisclosure inthe filing isprovidedwithintent
to camouflage anydataor foraggressive disclosure activities. Some registrantsbelievethatitisthe onlyway
theycan helpreaderstounderstandtheirorganizationthroughthe eyesof theirtopmanagement. But, also
too muchunwantedvoluntarydisclosure isprovidedtodistractthe readersbecause somethingiswrongin
the disclosure,tofatigue the readerswithtoovoluminousdisclosure ortowall uptrue and real data of the
organization
10 Thresholdsare helpfulinthe disclosureandtheycaninforminvestorsmore aboutthe organization’s
performance. Ipersonallypreferapercentage of revenuesorassetsasquantitative thresholdsthatmeans
the focusshouldbe on financial health(condition)of the organization(whataboutpeercompetition,they
should/canbe foundonline)
11 The staff must developacombinationof qualitative andquantitative thresholdstohelpthe investingpublic
to examine the organization

2. 2 | ResearchconductedbyArthurMboue
12 Surely,registrantsfindprinciplesbaseddisclosure toohelpfulinpreparingdisclosure. Thisapproachgives
themthe opportunitytotell the storythe waytheywant. Forinvestors,registrantsdonothave incentive in
trulydisclosingbadresults
13 Principle baseddisclosureswill affectthe whole disclosure systembecause the ball will be onthe executives
camp
14 Registrantsshouldmake sure theirdisclosure isaddressedtoanaverage reasonable investor. Thatmeans
someone withan acceptable knowledge infinance,accounting,financialreporting,securitiesregulation
coupledwithknowledgeof forms,contentandmore or he mustjust have historyandreputationof making
himself investmentandvotingdecisionafterreliance tothe disclosures. If the registrantoverestimatesthe
level of itsinvestingpublicreadersitwill provide toomuchinformationincludinggraphs,ratios,charts,
tabularrepresentation,something itsreaderswill findtoomuchto digest. If the registrantunderestimates
the level of itsinvestingpublic,itwill provide toolittle informationhelpingitsreaderstobelieve thatitis
hidingbaddata or any otherskeletoninthistype of disclosure (closet). Taylorthe disclosuretothe subsetof
the investorcommunityispreferablebutthe rule justrequiresandshouldrequire the disclosuretobe
addressedtothe average reasonable investor. Thatmeans,if he/she isasubsetof the investorcommunity,
it will be greatbutno everyone will understand whathe readsinthe disclosure,thisisthe true reality,itis
nobodyfault.
15 SEC shouldkeepthe rulestorequire disclosure thatisformattedtoprovide informationtoreasonable
investorandhelpthemtomake investmentandvotingdecisions
16 Whenthe disclosure isaddressedtosophisticatedinvestor,itisfull of ratios,charts,andgraphs andthen
textual disclosure. Itmakesthe disclosure toovoluminousandcomplex. The disclosurecannotpossiblybe
tailoredforthe novice andlesseducated,why?Finance,financial reportingandsecuritiesregulationwill
neverbe toosimplified
17 ThisinformationisaccessiblethroughSEC.govandcompanywebsite(IR),some companiessende-mail alerts
to theire-subscribersaboutthe availabilityof newly filed10-K,10-Qand ARS. Sophisticatedinvestorscan
access these fileddocumentsassoonas theyare postedby the SEC througha 3rd
party provider. Thisnew
instantsystemmayor may notviolate fairdisclosure (FD)
18 Anytestingaboutinvestorsuse andaccessto the disclosure will notprovide anymeaningful datatothe staff
19 Normally,novice investorswithlesseducationandtraininginfinancial disclosure maytendtouse 3rd
party
analysisorjustmarketprice of the organizationtomake theirinvestment decision
20 Professionalsecuritiesanalystsare sophisticatedinvestors,theypreferdisclosure prepared withalotof
ratios,charts, graphsinorder to shiftcontrol fromaverage investorstoprofessional paidanalysts
21 Confidential treatment,scaleddisclosures,NoActionLetters,waivers,extensionsare justmain
accommodationsusedtolessenthe toll of the disclosure. There isanotherimpendingaccommodation
calledclawbackrules(newRule10 D-1 gives rightsto the compensation committeeto seekto recover
paymentsof incentivecompensation if theperformanceresultsleading to the paymentarelater subjectto
downward adjustmentorrestatementof financialornon-financialperformance),itisrelatedtoexecutive
compensation. The benefitsof the disclosure are legal costs,reputationalvalue andotherscanbe
sometimesquantifiedbyreviewingthe trendinthe SEC enforcementactions.
22 In additionof scaleddisclosuresandconfidential treatment,we have NAL,extensionsandotherwaivers,
whatwe can do isto improve these rulesandprocessesandfix themproperly
23 On 21 and 22, I gave main benefitsandcostswe mustevaluate fordisclosure effectivenessinitiative
INFORMATIONFOR INVESTMENTAND VOTING DECISIONS-CORECOMPANYBUSINESSINFORMATION
24 The problemwithitem101(a)(1) isthe requirementof the yearwhichthe registrantwas organizedandits
formof organizationbecause all websitesof companiesmustcontainthisinformationasabasic. I have no
problemwiththe factthat form8-K (item1.03 and2.01) requiresthe same typesof information. Itisa good
repetitionkeepingthe registrantsfromabusesof excusesargumentaboutlackof reliance
25 Item101(a)(1) isnot that bad,removingthe requirementof the yearwhichthe registrantwasorganizedand

3. 3 | ResearchconductedbyArthurMboue
itsform of organizationwill make itbetter. Ido not mindkeepingthe 5 yearsrequirement,butthe
alternative if anywill be 4or 3 yearsrequirement
26 Thisdisclosure isnotas useful asitseemsto. It wouldbe bettertorequire registrantstoprovide a
descriptionof itsbusinessascurrentlyconducted. Inaddition, the registrantcanprovide adiscussionof any
material changesthathave occurredin the last5 years
27 I will notrecommendanyrevisionof item101 (a)(1) to require adisclosure of a registrant’sbusiness
strategy. Althoughsome investorsmayneed thisdisclosure,itcanresultina huge competitive costtothe
registrant. Letsay may be witha differentdefinitionof ‘businessstrategy’,itmaywork.
28 A summarydisclosure of the general developmentof a registrant’sbusinessinall filingsexceptthe initial
filingwillworkbetter. Thatsaidthere’snoneedfora more detaileddisclosureof aregistrant’sbusiness
29 Sophisticatedinvestorsare mostlikelytovalue the informationrequiredbyitem101(a)(1)
30 The cost of providingthe disclosure requiredbyitem101(a) isnot clearwhenregistranthasto exactly
provide anticipatedmaterial acquisitionof plantorequipment andanticipatedmaterial change innumberof
employees. Idonot have anyfigure of the change as a resultof anticipatedregulationchanges
31 101(c) still providesuseful informationtothe investors. Ibelievethatbacklogdisclosure needstobe
relocatedinthe MD&A, givingthe opportunitiesforthe registrantstodiscussissuessurroundingbackloglike
production,plants,distance,inventoryspace,… In addition,Idonot believethatregistrantsneedtobe
requiredtodisclose the namesof theircustomers. Theycando so if theychoose to butthisdisclosure can
resulttocompetitive costs. Atthe same token,I do notwant registrants tofile forconfidential treatment
everytime theyare makinganydisclosure
32 In a competitive industry,itcancreate unnecessaryfilingforconfidentialtreatment Iwantto reduce this
cost and itsimpact
33 The electionof tabulardisclosure andchartscan improve the qualityof thisdisclosure especiallywhenthe
registrantisexperiencingchanges
34 General descriptionof the businessisnotusefulatthislocation(maybe businesssection)
35 Industryspecificdisclosure canbringsome lights onhow some registrantsdeal withcertainissue like
backlogs,…inthisindustrybutitmustbe done basedonprescriptive approachorregistrantswill choose to
disclosure whatwill helptheirmarketsharesprices.
36 13 itemsrequirementsinitem101c are too much, itwill require achecklistoryouwill forgettodisclose
informationrelatedtosome requirements
37 101c isimportantand shouldbe required inevery 10-KfromEGC to highlyaccelerated filers
38 Some informationcurrentlydisclosedinthe descriptionof businesscanbe discussedinthe MD&A
39 Requirementsshouldbe basedonmateriality (tests)because we are calledtosimplifythe disclosure and
remove all unnecessaryfacts. Thiskindof disclosurewillcreate lesscamouflage of baddataand more focus
on informationneededtomake votingandinvestmentdecisions. We canonlydevelop aprescriptive
disclosure systemwithoptionstoregistrantstoexercise theirrightsforvoluntarydisclosure,something
closerto decision basedapproach.
40 Sophisticatedinvestorswillfind101c veryuseful withall its13 itemsrequirements. Some tabular
representationandchartscan improve itsqualityandserve itsreaders includingprofessionsophisticated
investors better
41 It isno easyto quantifythe costof thisdisclosure butforcompetitive reasonwe shouldavoiddisclosingdata
withadverse effectoncompetitionorrequiringregularfilingof confidential treatment
42 We shouldenhance the disclosure of item101(c)(iv) toincludecopyrightsandotherIP. There isnothingto
define withthislist,we shouldonlyaddcopyrightandotherIP
43 I believeitisgoodto addother IPfor industrybasedapproach,eachindustrywill addwhatthe registrant
thinksitwill helpitsreadersandinvestorstounderstand itsspecificindustry
44 It doesnotmatter the registranthasa lotof IP, itmust be basedon itsdisclosure andmaterialitytest. A
tabulardisclosure willbe easytodigestforaverage reasonable investor,itmustfocusonexpirationdate

4. 4 | ResearchconductedbyArthurMboue
(withorwithoutrenewal clause of amajorIP)
45 It will nothelpthe whole philosophyandpotential legalchallengeof it,leavingthe industryguides including
pharmaceutical,technology,manufacturing,…,the opportunitytoguide these specialized registrantsinthe
bestinterestof the investingpublic andtransparency
46 Disclosure of specificexpirationdate of IP,...,canleadto expertsexodus whilemakingthe registrant
vulnerable toitscompetitors.
47 Disclosure aboutgovernmentcontractsisveryimportantwhenitismaterial. Remediationactioncanbe
addedbecause thisoutsourcingisone of the bestcontractual arrangements
48 It dependsonmateriality,if agovernmentcontractismaterial,itdoesnotmatterthanthe registrantisnota
governmentcontractor,investorsmostlysophisticated one will be bestinformedwith the full disclosure of
the governmentcontract(IBNR,remediation,arbitration,…). Butdiscussionaboutthisoutsourcingcanbe
locatedinthe MD&A
49 We shouldkeepthiscurrentdisclosure of item101(c)(1)(xii) the wayitisnow
50 Thisdisclosure isimportanttoinvestorsif itismaterial because ithaslegal andreputational costs,itis
appropriate where itislocatednow
51 We shouldrequire all disclosuresaboutmaterial effectsthatotherregulationmayhave onregistrant’s
capital expenditures,earningandcompetitive positions
52 The current disclosure requirementissufficient
53 We shouldrequire registrantstodescribe ordiscussforeignregulationsimpactingtheiroperationsand
financial conditions. Thisinformation will helpinvestorsevaluate foreignoperationandmake informed
investmentdecision
54 Disclosure of the numberof employeeshelpinvestorsunderstandthe qualityorvitalityof the operation
includingoverstaffedornot,full time,parttime andindependentcontractors. Thisdisclosure canhelp
investors’ readerstounderstandhow the companymanagesriskrelatedtoitshumancapital.
55 Thisinformationisnotreallyusefulbecause of itsforecastingapproach. Butitdoesgive ideaof the growth
forecastedby the new registrantitself
56 Full Time,PartTime,independentcontractors,domestic,foreignemployees’categorieswill helpthe investor
readersto understandhowthe registrantis managingriskrelatedtoitshumancapital. Alsoaverage years
withthe company,unionand non-union memberswill helptomeasure the levelof commitmentandhappy
workforce thatmeansproductivity
57 As longas the registrantispayingitsworkforce,itcancount themwitha little additional cost. Itiswhy it
mustproduce a specificnumberof workforces because itreducesthe companyreputational costs. There is
not organizationwithoutworkforce;the workforce isthe nucleusof the company. Everthe robotization of
the workforce will noteliminatethe workforce,itiswhyinvestorsneedthisinformationinorderto
understandhowthe nucleusis(will) performing(perform).
58 Disclosure aboutunionmembership,robotizationof the workforce,difficultyof hiring goodexperts and
employees’ commitmentcouldfindgoodlocationinthe MD&A. A simple tabulardisclosure canincrease the
quality andattractiveness of thisdisclosure.
59 Outsourcingandsubcontractingarrangementscancreate huge coststo the registrant;itis whywhenitis
material,registrantmustdisclosethesearrangements,theirnames, andexperiences,the typesof
arrangements,monitoringandreviewsystemsif itisincluded inthe clause.
60 Item102 cannotbe eliminated. Forsome industrieswithlessmaterial plant,officesandotherreal estate
impactingtheiroperation,thisdisclosure canbe relocatedinthe MD&A section. Itwill be improvedover
there witha discussion
The whole issue forinvestorsishow manypropertiesaregistrantrents,owns and/orleases. Iwill addthat
rentor buystatusshowssome kindof commitmentinthe area,availabilityof liquidity,availabilityof fixed
assets,longtermstrategyplanor otherinterpretations
61 The current disclosure of item102 issufficienttoinvestorasfar as I am concerned. If disclosedcompliantly,

5. 5 | ResearchconductedbyArthurMboue
it will helpinvestormake aninformedinvestment andvotingdecisions.
62 Like I said,the disclosure aboutregistrantheadquarters,officesspacesandvacancyandotherfacilitiesis
importantto itsinvestorsorpotential investorsandreaders
63 Enhanceddisclosure aboutpropertydisclosureoutof MD&A can be requiredonlyformanufacturing,retail
and alike industries.
64 Duringrapidgrowth,the availabilityandcostsof propertiescanincrease forregistrantwithalittle setaside
space and vacancy. It iswhysome of these risksshouldbe forecastedanddiscussed.
65 Sophisticatedinvestorsare more likelytovalue the informationrequiredbyitem102
66 Oil and gas industrytechnicallycomplywiththisrule withoutthe approval of anyconfidential treatment
because of secrecysurroundingundevelopedanddevelopedwellsandcompetitive environment. There isa
needforchange to reduce the numberof confidentialtreatmentfilingandcompetitivecosts. These changes
will restore some friendshipbetweenthe regulatorsandthe registrantsfromthisspecializedindustry.
INFORMATION-COMPANYPERFORMANCE,FINANCIALINFORMATIONANDFUTURE PROSPECTS
67 Item301 isimportantto investors. Ido not know whyfive yearinformationonthistabularrepresentation,4
or 3 yearswill nothurt
68 We can affordto eliminateitem301because of 3rd
party offerof thistable. Itseliminationwill notincrease
itscosts to investorsbecause itwillbe available online maybe forfree. Noadditional effortwill be provided
to access thisinformationforfree
69 If we retainit,we shouldmodifyitwithafew yearsandreducedinstruction2to abide to instruction1’the
purposeof theselected financial data should beto supply in a convenientand readableformatselected
financialdatawhich… ‘
70 The problemof 5 yeartrendis that the item303 doesnot longerprovide inpractice its5 yeartrend
disclosure,one of themshould. If 5 year periodisappropriate,there isnowaywe wouldeliminate this
disclosure. Reductionof instruction2can improve the qualityandattractivenessof thisitem(301)
71 No,we shouldnotrevise item301 to provide asimilaraccommodationforEGC and SRCbecause of lack of
reliable informationandrapidgrowth
72 No,we shouldnotrequire item301 underthese circumstances
73 No,we shouldfocuson makingcurrentdisclosure desirable and attractive toinvestorswhentheyare making
informedvotingandinvestmentdecision
74 Sophisticatedinvestorsare more likelytovalue item301
75 Withthe rightautomaticsystem, providingthisdatawill notrequire toomuchefforts
76 Instruction2 doesnotprovide the neededdisclosure. We shouldmodifythisitemtoincludeaflexible
approach focusingonvoluntarydisclosure while providingthe reasonforchoosingeachitemfordisclosure.
77 We don’tneedapreferabilitylettersignedbyanyauditornotbecause itwill increase disclosure costsbut
alsoit will be avoluntarydisclosure withsomelimitations
78 Listingof specificitemsof disclosure oninstruction2impactsthe way the registrantwill provideits
disclosure. Itshowsthattheyare all requiredasa checklist. Itmustaddressitsdisclosure toall of these
itemswitha prescriptiveapproach.
79 We shouldretain302 (a) while removing302 (a)(1)
80 It isimportantto the investingpublicbeside item(302)(a(1),the restisnotthat duplicative itiswhyitshould
not be classifiedinthe removallist.
81 Investorsstill needinformationaboutpatternof corporate activitieswithtrendoverregistrantsegments
82 I objectto the auditorinvolvementanditspreferabilitylettersorreview will increase the costsof disclosure
83 Investorsuse some of the items302 (a) disclosure
84 Sophisticatedinvestorsvalue more thiskindof disclosure (item302(a))
85 Item302 disclosure increasescostsof disclosure butithelpsinvestorsassessitssegments
86 The financial costswoulddecrease withthe eliminationof item302 butinvestorsmaynotbe informed

6. 6 | ResearchconductedbyArthurMboue
effectivelytoassesssegmentsperformances
87 Wouldinvestorsassesseffectivelysegmentswithoutitem302information,Idonot know the answerto that
question
88 All item303 requirementsare importanttothe investingpublic. Itiswhy MD&A isthe nucleusof the full
disclosure (10-K,10-Q). You cannotbe more informedabout10-Kor 10-Q if youdidnot read and
understandthe discussionandanalysisof the MD&A. It is whyMD&A is the numberone frequently
commentspartof the disclosure (44%). We can improve the quality,desirabilityandutility of MD&A by
limitingaggressivelanguage style andmakingsure thatregistrantsfollow aprescriptivecheckliststyle
disclosure.
89 The current disclosure focusonregistrantfinancial conditionandresultsof operation. Materiality standard
isworking. It iswhyI believe the adoptionof othermethodsincludingthresholds(beenthere)willreduce
the flexibilitythe registranthasnow inwritingitsanalysisfromthe eye of itsmanagement
90 Yes,we shouldconsolidate all the guidance relatedtoMD&A as a workshopforwriters,managementand
regulators. Thisworkshopwill be afacilitator andyoumustrememberthatMD&A ispresumedtobe written
by managementof the registrant. Itdoesnotmatterwho isthe ghostwriter
91 I believeitwill be bettertorevise rulestorequire anexecutivelevel overview. Itwill be goodforthe
registranttofollowachecklistwithacertainpresetsizesforvoluntarydisclosure
92 Like I didsay, the checklistcanhelptoreduce duplicativedisclosure
93 If we wantinvestorstogeta meaningful analysisinMD&A a combinationof eliminationof aggressive
language style,prescriptive checklistorienteddisclosure andprescriptivesizesforvoluntarydisclosure can
help
94 Both sophisticatedinvestorsandreasonable investorsare takingtimestoreadMD&A. Whenitis too
quantitative,sophisticatedinvestorsare more likelytovalue thatpart
95 I do notknowif taggedformatwill be better
96 A MD&A is a legal documentwrittenbythe management of the registrant,once auditorgetsinvolvedinthis
part of the disclosure itwill notonlyincreasethe costof the disclosuresbutalsoshiftorshare liability
97 Item303 isexpensive anditcomeswithnon-financial andfinancialcosts. Ibelievethe reputationof the
whole discussionis jeopardized if the managementanalysiscanconflictwiththe otherpartsof the discussion
creatingchallengestothe full disclosure.
98 Item303 helpsmanagementtell itsstoryof its company financial healthandoperation. Thisisthe testfor
the managementaboutfairnessandtransparency
99 The two steptestfor disclosure of aknowntrend,demand,commitment,eventoruncertaintywill require a
material testtoresultinthe most meaningfulforwardlookingdisclosure. The eventis‘reasonable likely’to
occur whenthere isthe chance of the future eventoccurringis more than remote butlessthanlikely
100 Yes,we shouldrevise the twosteptest toconsiderrequiringadisclosure whenatrend,eventoruncertainty
ismore likelythannotprobable orreasonablypossible tooccurrather than‘reasonablylikely’tooccur
101 We shouldrevise item303 to incorporate the probability/magnitudestandardfrom‘Basicv.Levinson’,itwill
turnoutlike disclosurewhenatrend,eventoruncertaintyismore likelythannot,probable orreasonably
possible tooccuror withtwo part test
102 It will make sense torevise item303 to specificallyrequire registranttothe extentpracticable,toquantify
the material effectsof knowntrendsanduncertaintiesaswell asthe factorsthatcontributedtothose known
trendsand uncertainties. Bydoingso,registrantwill share toolsitdiduse initsanalysis,itisprobable that
some readerswill notshare the registrant’sconclusionbuttransparencywillprevail becauseitprovidesan
understandingof the management’sanalysis
103 No,I believethatwe shouldrevise item303 to include aprescriptive checklistregistrantwill use intheir
disclosure
104 Yes,we shouldbe requiredtodisclose anycommentary,analysis,performance indicatorsorbusinessdrivers
relatedtoa registrant’skeyindicators. Ibelieve prescriptivechecklistcoupledwithprescriptive sizefor

7. 7 | ResearchconductedbyArthurMboue
voluntarydisclosurewillbe more appropriate.
105 Reasonable investorswill value more industryspecifickeyperformance indicators
106 Managementiswell positioned whenitcomestothe identification of standardizedperformance metric
across an industry
107 We shouldretainaperiodbyperiodcomparisonprovidedinthe MD&A in orderto show changesfrom
previous periods
108 Additional disclosuresaboutregistrant’sresultsof operationsare warranted. Forinstance,social mediacan
provide factorstheyuse todetermine thatone userdoesnothave several accounts andhits
109 As faras I am concerned,the 3 yearscomparisonismaterial informationtothe investingpublic. Itiswhy
there isno needforchange. Whenit comesto comparison,the highestthe numberof yearsthe better
readersandinvestorswill understand thistrend
110 We can allowregistrant’scrossreference the earliestof the 2periods
111 Year to yearcomparisonmakesiteasyto understandthe trendandperformance of the registrant;itiswhy
registrantsrelyonthismethod. Theyare formatsor presentationsthatcouldresultinadiscussionand
analysisof the material informationnecessarytounderstandthe registrant’sprospectsforthe future. Itis
betterfora registranttoprovide the yeartoyear comparisonina standardizedtabularformat.
112 Item303(a)(3) doesnotprovide useful informationaboutregistrantsthathave notyetgeneratedrevenueor
begunoperations.
113 A separate disclosure willprovideaclearpicture of the liquidity,capital resourcesandprospectsof the
future
114 Registrantsmustbe requiredtoprovide aseparate disclosureof the liquidityanditscapital resources. Doing
so will encourage registranttodisclose if ittracksanyknowntrends,demands,events,commitmentor
uncertaintiesdevelopingthatiscausingamaterial impacton future liquidity
115 It isnet cash providedbyoperatingactivities,netcashused forinvestingactivitiesandnetcashprovidedby
financingactivities. Definingthe term‘capital resource’willbe helpful forregistrants. Noall registrants
currentlyinterpretthe term‘capital resources’includingfundscommittedfrommaterial capital expenditures
and the sourcesof those funds.
116 I do notthinkso
117 Fiscal yearand interimperiods,Ibelieve these periodsare enough. Developmentsinthe mostrecentfiscal
yearis not sufficienttoconstitute atrendasthe termisusedin item303
118 A sensitiveanalysisinthe discussionanalysisof liquidityandcapital resourcescanbe requiredforthe fiscal
yearperiod
119 Registrantscanprovide additionalmeasuresof intraperiodliquiditywithaverage quarterlyliquidityorother
measurescharts
120 Registrantmustbe requiredtoprovide liquidityriskmanagementpoliciesandmore
121 Disclosure aboutregistrantsreliance onshorttermborrowingisnotclarify byitem303, registrantsmust
describe all the sourcesof itsshort(long) termfunding(borrowing).
122 Yes,short termborrowingdisclosure 2010 proposal shouldbe revisited. Itwill resultinadditionaldisclosure,
quantitativelyandqualitativelyof the shorttermborrowing
123 SEC shouldconsiderdifferentdisclosure requirementsforfinancial institutionsversusnon-financial
institutions
124 Tabularrepresentation,chartingorgraphical representationof the shorttermborrowingdisclosure can
increase the quality,desirabilityandattractivenessof thisdisclosure
125 Item303 (a)(4) isimportanttoinvestors
126 SEC shouldretain itthe wayit is. Yes, SEC shouldalsorevise itsrulestorequire registrantstoanalyze the
risksand financial potential associatedwithoff balance sheetarrangements
127 The locationof thisdisclosure isnotimportant,itcan stay where itisbuttheyare a lot of challenges

8. 8 | ResearchconductedbyArthurMboue
associatedwithauditingthisinformation
128 It will be verycostlytocompletelyeliminatingitem303(a)(3)
129 Registrantcan provide disclosure aboutmattersthatwill resultinorisreasonablylikelytoresultinthe
terminationormaterial reductioninthe availabilityof material off balance sheetarrangementstothe
registrantsandthe course of action the registranthas takenor proposestotake to addresssuch
circumstances
130 SEC shouldnotrequire additionaldisclosure of off balance sheetarrangementsthatoccurredduringa
reportingperiodwithexhibit
131 The table of contractual obligationprovidesmeaningfulinformationtoitsinvestors. There isnotenough
room forimprovementtothistable.
132 SEC shouldrequire narrative disclosure toaccompanythe tabulardisclosure includingdiscussinghow
registrantplanstomeetcurrentand future obligation
133 It doesnotmatter the locations,comparabilityamongregistrants isstill the goal of investorinmaking an
informed investmentandvotingdecisionandregistrant needstoevaluate itsownperformance inthe peer
competition. A narrative disclosure canaddquality,desirabilityandattractivenesstothe disclosure and
improve readersabilitytounderstandthe disclosure
134 SEC shouldnotenhance item303(a)(5) byincludingothercategoriesof contractual obligationtothe 5
requiredcategories
135 Footnote disclosurecanprovide additional guidance suchasinterest payment,repurchase agreementsortax
liabilities
136 I do notbelieve that revisitingitem303 (a)(5) torequire registranttoseparate amountsinthe table of
contractual obligationintothose thatare reflectedonthe balance sheetwill addquality,desirabilityand
attractivenesstothe disclosure
137 Yes,SEC shouldrevise item303 to require disclosure aboutcritical accountingestimatesbecause this
informationisimportanttoitsinvestors
138 SEC can use 2003 MD&A interpretive releasetodefine ‘critical accountingestimate’
139 Registrantsrepeatthe discussionof accountingpoliciespresentedinthe notestothe financial statement
because of lackof prescriptive checklistsguidance. Itwill helpthemtoavoidthisrepetition
140 2003 MD&A interpretive Release definitionof critical accountingestimatesisimportanttothe investing
public. If it isincorporatedintoRegS-Kitwill be better
141 For competitivereason,SECshouldadoptpresumptiverequirementsrelatingtocritical accounting
estimates. SECcan designandadopta prescriptive requirementsrelatingtocritical accountingestimates
afterrevisitingcurrentissuesand rulemaking projects2001. Theyare accountingestimatescommontoa
particularindustrythatare critical to all participantsinthatindustry(estimateonprice pershare of the
currentperiods )
142 SEC shouldrequire the disclosure of management’sjudgment(how didtheyassessmateriality) and
estimatesthatformthe basisforMD&A disclosure
143 SEC shouldrequire managementtodisclosethe nature of itsassessmentsof errorsthatitdeterminedto be
material
144 SEC shouldrequire disclosure of othercritical accountingestimatessuchasthose that impactothermetrics
or measures(numberof newcustomers,numberof subscribers,etc)
INFORMATIONFOR INVESTMENTAND VOTING DECISIONS-RISKAND RISK MANAGEMENT
145 SEC shouldrevise itsrulestorequire thatriskfactorbe accompaniedbyspecifieddiscussionof howthe
registrantisaddressingthe risk
146 Registrantcan discussthe effectonperformance forriskfactorif it’smaterial. SECcan ask registrantto
discussthe extentof riskanditspotential impactonfuture financial conditionandoperatingresults,disclose
the anticipatedrisksandtheir potential impactonfinancial conditionandresultsof operation,describe the
quantitative andqualitativemagnitude of those risksincludingpotential costs, disclose if the registrant

9. 9 | ResearchconductedbyArthurMboue
recognizesanyrisksfactorswithmaterial effect,describe the adequacyof preventive actiontakentoreduce
these risksinthe future,describe the costsforremediation,protectionandlitigationaswell investigations,
describe howthe registrantaddresseseachof those risksandotherrelatedandcontingencyconsequences,
describe the risksandtheirimpactsonfuture declines,disclose anyriskmanagementstrategiesputinplace
by registrantandany limitationsontheireffectiveness,describe the methodsandquantifiedparameters
usedto monitorandcontrol riskmanagementactivities
147 SEC can modifyitsrulestorequire registrantstodisclose the specificfactsandcircumstancesthatmake a
givenriskmaterial tothe registrants. Witha guidance of prescriptive checklists,registrantwill be as
transparentas possible abouttheseriskfactors. But,SEC shouldnotrequire registranttoeitherrate or
prioritize theseriskfactors
148 Vaguenesscanincrease the opacityof the informationfromaregistrant’sriskfactors. Itisnot aboutthe
lengthof the information,itisaboutitsquality. If itisclear,it will be desirable andattractive tothe investing
publicandunderstoodbythem.
149 I believethatitisnot possible forthe SECto revise itsrulestodiscourage registrantfromprovidingriskfactor
disclosure thatisnotspecificto the registrantbutinsteaddescribe risksthatare commonto an industry.
Some genericrisksfactorsare importantto investors
150 SEC can specifygenericrisksthatregistrantsare notrequiredtodisclose themif theycanidentifythem.
Anotherwayisto try to developalistof material risksif possible
151 Once the SEC developsthatlistif material risks,theywill become apartof the new list. That saidthe newlist
will be more clear,attractive andprescriptive.
152 No,SEC shouldnotrequire the registranttoidentifyanddisclose inorderits10 most significantriskfactors
because itwill require more efforts (cost) andnoreal ROI.Will itrequire more expertise andexpertsinrating
riskfactors or face SEC comments letters anddayincourt? May be. The goal of thisprocessisto make sure
that registrantismanagingitsriskproperly. Thatsaidrankingand ratingof riskfactors can affectthe way
registrantprioritizesitsriskmanagement. Registrantscanprovide riskfactors summarybecause this
informationwill helpanaverage investorinunderstandingthese risksinafew wordseasytodigest. Itis not
that challengingif the registrantistrulymanagingthese risksthatmeansidentifythemfirst.
153 A little guidance (checklistornot) canhelp
154 If we couldpreventall the risks,we will notspendall the money,time andenergyrelatedtorisk
management. Idoubtthat we can create a differentprocessthatmeansone entitystartsexperiencing
problemsthenotherscontrol andpreventthemfromreachingordamagingtheircompanies. Ibelieveany
revisionof item503c will notimprove the quality of thatprocess
155 Sophisticatedinvestorsare more likelytovalue item503c
156 Providingthe currentitem503c informationtothe investingpublicisnottooexpensive. Aswe knowthe
cost will change forthe worse to provide anenhanceddisclosure withlimitedbenefitsfromit. We must
balance thisprocessinorderto focuson increasingitsquality,desirabilityandattractivenesstherefore
disclosure effectiveness
157 Yes,item305 is importanttoinvestors
158 Item305’s informationhelpsitsinvestorstoassessthe registrant’saggregate marketriskexposure. Idonot
believethatitdoeseffectivelyhelpinvestorstoassessthe impactof market risksensitiveinstrumentsonthe
registrant’sresultsof operationsandfinancial condition
159 Disclosure alternative onitem305 (a) somehow helpregistrantwithqualitative disclosureaboutmarketrisk.
These rulesdonot discourage registrantfromevaluatinganddisclosingtheirmarketrisk. Itwill be helpful if
the ruleswere more prescriptive
160 There isa needfora revisioninthe marketrisk disclosure requirementstoincludeadditional disclosure
aboutrisks.
161 Financial institutions,financial servicesand othersystemicallyimportantfinancial institutiondesignated
institutions shouldprovide anenhanceddisclosure aboutmarketriskbecause theymanage otherpeople

10. 10 | ResearchconductedbyArthurMboue
moneyandtheyare veryimportanttothe economy
162 Sophisticatedinvestorsare more likelytovalue the informationrequiredbyitem305
163 The cost of providingitem305 disclosure thatmeanstracking,collecting,assessing,reviewingand
disseminatingthisdisclosureishuge because itdoesnottolerate mistake inanuncertainfuture. The costs
will increase withdemandforenhanceddisclosure. Unfortunately,Icannotquantifythese costs.
164 Since the Clintonsera,the worldof complex structuredfinancial transactionhave witnessedthe birthsof
numerousresearchpapersandfindingsrelatedtothe understandingof evaluation,monitoring and
managementof itsmarketrisk. We have moral,intellectualandprofessionalobligationstoreview,assess
and selectthe bestof the intellectual propertiesandadjustthe rulestothisnew reality. I cannot say what
will fitasalternative disclosures,butthe restwill be decidedbythe reviewteaminthe bestinterestof
investors
165 It dependsof the sizesandproductsof the registrants
166 No,for commonalityreasons,we don’tneedamanagementorientedapproachbecause all of the registrants
will provide differentandconfusingdisclosuretotheirinvestors,itiswhywe mustmake sure that we couple
thisrule to prescriptive requirements
167 No,item305 is not repetitive toRule 4-08 of Reg S-X. The Rule 4-08 requiresthatdisclosure regarding
accountingpoliciesshallincludedescriptionof the accountingusedforderivativesfinancialinstrumentsand
derivative commodityinstrumentsandthe methodof applyingthosepoliciesthatmateriallyaffectthe
determinationof financialposition,cashflowsorresultsof operationswhile item305 rule generallyrequires
disclosuresof quantitativeandqualitative marketriskmeasurementsof financial instrumentsheldand
issuedbylarge publiccompanies. Itdoesnotmeanthe policies aspectonly,item305 isnot foundinfull
elsewhere inthe registrantfiling. Investorsbenefitfromdisclosure aboutmarketriskexposure outside of
the auditedfinancial statements.
168 The problemisnot thatthe rulesallow standardizedoptional methodsof disclosure;the true problemisthat
the rule doesnot provide proceduresspecifyinghow tocomplywitheachalternative. Curingthis
malpractice will resultincomparabilityinthe disclosure acrossregistrantsadoptingspecifiedmethod. A look
of the CDI Market RiskDisclosure,datedJuly31,1997 provide some guidanceaboutkeyassumption
necessaryforthe understandingof the tabularpresentation(QandA 43), sensitivityanalysis(QandA 50)
and value atrisk disclosures(QandA 60)
169 SEC can revise the rulestorequire registrantstodescribe theirriskmanagementprocess. Itwill make sense
to require registrantsmostlythosewithnoor insignificantrisktodisclose how theyprevent,monitorand
evaluate risks
170 Once again,I believe thatitwill make sensetorequire registrantstodescribe theirassessmentof anyrisk
managementprocesstheyelect. Afteryearsof targetedreview of these disclosure,SECwill probablycome
up withbetterguidance (specifictothe industryorglobal)
171 Registrantswithcomplex riskmanagementapproachesorprocessesshouldhave anERM(Enterprise risk
Management) policiesinplace,describingitwill be appropriateandmaterial informationtoitsinvestorsand
the investingpublic
172 Registrantsshouldalsodisclose anymaterial change or waiverof riskmanagementapproach
173 Registrantsshouldidentifyfortheirinvestorsmaterialprimaryrisk exposuresnotalreadyaddressedand
disclosedtothemanyactionstakento manage those risks
174 The bestway to helpinvestorsunderstandintegrateddiscussionof riskmitigationwill startwithrisk
exposure andthenmitigation(interestrisk,riskexposure,monitory,preventive control,detectivecontrol,
reputational risk,foreignexchange risk,franchise risk,equityrisk,custodianrisk,regulatoryriskif applicable,
transferof riskand control,identifyrisk,describeitsmanagement,describe how itminimizerisk and
potential impact,describe the role of the BoD,segregationof duties). Managementshouldalsodisclose
theirviewsaboutthe material riskexposure andhow riskmitigationactionsare connected
175 Like I saidSEC shouldrevise itsrules toinsertthe disclosure aboutthe extentof aBoD’s oversightof risk

11. 11 | ResearchconductedbyArthurMboue
fromitem407(h) or somethingclose toitem407(h). But, there isno material reasontoprovide any
compensationriskdisclosure tohandicapCDA.
176 Item305(b)(1)(ii) statesthat“how thoseexposuresaremanaged. Such descriptionsshallinclude,butnot
limited to, a discussion of theobjectives,generalstrategies,and instruments,if any,used to managethose
exposures;”,Ibelieve thatSECcan require registrantstoprovide thistype of disclosure inlieuof disclosure of
theireffortstomanage or mitigate eachriskfactor. The disclosure of strategiescanpose competitive harm
to the registrantif it’sexecutedimproperly
177 Too much informationaboutriskmitigationwill nothelpinvestorstounderstandthe significance of risk
especiallywhenitisprovidedinaboilerplatelanguage. Itispossible thatrequiringregistrantstoexplain
howit addressesadisclosedriskcanreduce numberof genericorinsignificantrisksdisclosures.
178 Again,SEC can require registrantstoaddressmitigationormanagementof eachriskfactor as part of the risk
managementdiscussionwhile allowingacross industryreference tothe appropriate portionsof MD&A or
financial statement
179 Yes,SEC shouldrequire registrantstodisclose theirknownuncertaintiesabouttheirriskmanagementand
riskmanagementpoliciesandtheirimpactonthe registrantfinancial condition,resultsof operationsand
future prospects
180 SEC shouldconsideradrasticchange witha revisionof rulestocreate anitemfocusingonprovidinga
consolidateddiscussionof riskandriskmanagementincludinglegalproceedinginasingle filing. Thatmeans
a consolidationof items 1A,3,7A and otherrisk relateddisclosures
181 The benefitsforinvestorsare thattheywill have all risksinone item, readerswillnotneedtofurnishmore
effortstosearcha lotof locationstounderstandall the risks. Itwill be like CDA-Compensationdiscussion
and analysis. The challengeisthatitmay turn outto be toolong to ‘digest’
182 The cost of buildingacomprehensiveconsolidateddiscussionof riskisrelated tonew ideas(newformat,
newlearning) ;the breakingevenwill be whenSECwill startissuingcomment lettersaboutthisdisclosure. I
believethatsophisticatedinvestorswillapprove thisideaandwill nothold1sttimersaccountable totheir
mistakes. Itwill be like waitandsee inthe investingpublic
INFORMATIONFOR INVESTMENTAND VOTING DECISIONS-SECURITIESOF THE REGISTRANT
183 SEC shouldretainitem201(b)(1)
184 What trulymatterfor the investing publicisnotthe streetname andbeneficial ownerbutthe personwhois
makingthe investmentandvotingdecision. Itwill notmake sense toprovide streetname numberwhen
beneficial ownersare makingall the investmentandvotingdecisionsbehindcloseddoors. The utilizationof
thisdata by the investmentpublicdetermines whatisinthe bestinterestof the investmentpublic. This
informationwassupposedtocommunicate somethingtoitsreadersthatthingmaybe the numberof
decisionmakers. Requiringregistrantstoprovide the numbersof beneficiaryownerswill be clearlytoo
difficulttoobtainbecause of the bindingcontractual agreements. Inadditionitwillnotprovide the target
benefit. Ibelievethatthe registrantmustdisclose the numberof beneficiaryownersthatmeansinvestors
whomake acquisitionof sharesthemselveswithphysical certificateorthroughDRS (directregistration
system) andalsothe numberof streetname owners. Once investorsempowerssomeone else tomake
investmentandvotingdecision,the disclosure of empoweredinvestorsnumberwill addmore qualitytothe
disclosure.
185 Both sophisticatedinvestorsandaverage reasonable investorswillfindthisinformationuseful butitisstill
confusing
186 The informationabouttermsandconditionare furnishedtopotential investorsinthe secondarymarket.
The article of incorporationandBylawsare veryimportantinformationinvestorsshouldreadandrelyon. I
am not sure that theypreferthe one filedasexhibitorthe otherpostedonline (companywebsite). Butthey
shouldrelyonthe one filedasexhibittothe registrationForm10-Kbecause itissupposedtobe reviewed
187 SEC shouldrequire registrantstoprovide item202 disclosure eachyearinform10-K. Investorsneeditmore
aroundthat time not justto make investmentdecisionbutalsotomake votingdecision. All material

12. 12 | ResearchconductedbyArthurMboue
changesshouldbe disclosedintheirquarterlyandannual reports. Thisinformation helpsinvestors
understandthe registrantP/Eratioand itsdividend(payout,retained,…). Form8-Kis servingitspurpose
sufficientlywiththisinformation.
188 Average reasonableinvestorsvaluemore thisinformation
189 Thisinformationisone of the cheapestinformationforthe registrant. Itdoesrequire noeffortwithactual
technologysystem
190 The benefitsof providingthisdisclosure are nothuge butitdoeshelpinvestorsunderstandhow
managementandBoDmanage the registrantequity
191 SEC shouldretainitem701 (a)-(e),Ibelievethatthe past3 yearstrendof all salesof unregisteredsecuritiesis
a good informationtothe investingpublicaboutthe registrantprivate placement
192 Item3.02 focusesonsale of equitysecuritiesintransactionthatisnotregisteredunderthe SecuritiesAct.
And,the amountof the equitysecuritiessoldinthe company’slastreportfiledunderthisitemorlast
periodicreportwhicheverismore recentconstitutesmore than1% of the company’soutstandingsecurities
of thatclass. Grants of stock optionpursuanttoan employee stockoptionplanare excludedfromthis
disclosure.Whileitem701disclosure focusesonall salesof unregisteredsecuritiessoldbythe registrant
withinthe pastthree years. Inaddition,Ido not know the appropriate thresholdshere. Butitis notjust a
matterof threshold;itisalsoaboutaggregate quarterlyandannually.
193 It will make sense torevise the rule torequire disclosure of all unregisteredsalesof securitiesduringthe
reportingperiod. Simplyrequiringacrossreference toform8-K will create problembecause of itsthreshold.
I am afraidthat we have to informinvestorsabout1percentor lessof the numberof sharesoutstandingof
the equitysecuritiesbeingsold
194 SEC shouldnotremove the item701. Atthe same token,we cannotrequire registranttofile form8-Kevery
time theywill sell asmall amountof shares;we shouldkeep itthe waythingsare. We cannot affordto
eliminateitem3.02,it isa good informationaboutthe registrant’sprivate placement
195 Whenit comesto changingof locations,Iwantto read theirargumentsbecause itwill addalotof pagesto
item7, somethingIhave some reservationtodo
196 I do notbelieve theyare alotof challengestocomplywiththisitemrequirements
197 I will discontinue item701 f disclosure,SECshouldrevise item701f to addbeautyand attractivenesstoit
198 If the actual use of proceedsdiffersmateriallyfromthe descriptionof the offeringandcome fromoffering
transactions,we mustrelocate thatpast disclosure inthe MD&A may be
199 Item703 isveryimportantto investors. Itmustbe roomsfor enhancementof the repurchase disclosure.
200 SEC shouldrequire anenhanceddisclosure of repurchaseof aregistrantequity todiscussitsimpacton
leverage,EPS,…
201 Item703 providesagooddiscussionaboutrepurchase score. The benefitsforinvestors istoassessthe
repurchase programand understanditif it isin the bestinterestof the CEO,attractivenesstoratinganalysts
or shareholdervalue maximization
202 Disclosure of all repurchasesof securitiesduringregistrantsfiscal quarterisveryimportanttoinvestorswho
relyon EPSto make investmentdecision. There isnoreasontodisclose anon-material programsothe SEC
can set some thresholdtriggeringamaterial disclosure
203 Item703 quarterlyreportrequirementisappropriate
204 I do notbelieve averagereasonable investorneedsrepurchase informationpromptlybutif SECdecidesto
require repurchase onForm8-K,it has tofocus onhighthresholdinorderto reduce the cost of disclosure for
the registrantandincrease materialityof the disclosure thatmeansattractivenessof the disclosure.
INFORMATIONFOR INVESTMENTDECISIONS-INDUSTRYGUIDES,SUSTAINABILITY MATTERS AND EXHIBITS
205 No,all registrationsshoulddiscloseunderRegS-K,S-X,S-Ttoenforce uniformityincompliancetherefore
comparability amongregistrants
206 It dependsonindustry,some registrantfindthe industry guidesuseful inpreparingdisclosure forperiodic
reports

13. 13 | ResearchconductedbyArthurMboue
207 The challengesof providingindustry guidesdisclosure are the lackof uniformityincomplianceand
comparabilityacrossanindustry
208 I do notthinkcodificationwillsolvethe problem. If codification canbringconsistencytoindustryguides. It
will add qualitymakingthemcompete againstRegS-K,S-X…. Atthe end,it will have alotof challenges
overcomingobsolete
209 All industryguidesshouldbe updated. Otherindustryguidesshouldbe developedlike healthcare services,
entertainment-casinos-hospitality,entertainment-films,entertainment-music(media,broadcasting),defense
contractors, airline, research&development, financial institutions,regulatedindustries (electricity,water,…).
All of themwill benefitfromsuchguidance. Thatmeansindustryspecificdisclosure underRegS-Xwill be
betterforall of themif SEC can developthem
210 It shouldbe expensivetodisclose underindustryguidesbecauseitcanconflictwithRegS-Kand create
disagreementininterpretation. A new guidance maybe neededbecause itwillrestore uniformityin
compliance,comparabilityacrossanindustrytherefore lessconfusion
211 I can work withoutindustryguidesaslongasI can assessSECcommentletters,CDI,NOL,waivers,… Ican
developanypolicy becauseIhave a lotof data guidingmywork
212 It doescreate a lot of confusion. Asa policy staff,itdoesundermine the commissionrules. That issad,if
there isa conflict
213 It will be more useful toconsolidate all industryspecializeddisclosureslocatedelsewhere to RegS-Kif they
do notconflictwithRegS-Kthat meanstheywill addqualityandattractivenesstoRegS-Krequirements.
Theycan be identifiedbasedontheirnames. Itispossible thatCDIor SABhave addressedthese issues
before handintheirQ and A
214 Industryspecificdisclosure requirements shouldapplytoeveryregistrantinaparticularindustrybutwe can
alsoadd some qualitativeandquantitative thresholdstodistinguishthem
215 Sophisticatedinvestorsare more likelytovalue industryguidesdisclosure
216 There are specificsustainabilityandpublicpolicyissuesimportantto make aninformedvotingand
investmentdecisionincludingclimate changes,environmentissues,all sustainabilityreport,corporate
campaigncontribution,carbonemission,waterscarcityandhumanright. If the real issue istoadd quality
and attractivenesstothe informationinordertohelpinvestors relyonthe reporttomake an informed
investmentandvotingdecision,we shouldnotworryaboutchanging2010 interpretative guidance because
the onlyinformationimprovingthe understandingof the disclosure isenvironmentalcosts(litigationawards,
penaltiesandfines)
217 Although sustainabilityrequirementslineitem (customerhealthandwell-being,pollutionof air,market
pressure,communityhealthandwell-beingandmore) canleadto informationoverloadandexpensivecosts
of the reportfor fearfor prosecution,penaltiesandreputational costs. Thiskindof disclosure will
camouflage material information. Investorswouldhave hardtime readingthe whole reportand
understandingwhatismaterial inthatdisclosure
218 The sustainabilityreportoncitizenshipwebpage orthe like istoovoluminous,itreportsfromacquisitionof
greenvehiclestoinstallationof greenbathroom. ItismostlyforPR to the greenactivists,keepingthem from
joiningthe streetmanifestations withhedge fundsactivists. Integratedreportwill addquality, consistency
and comparabilitybutwill reduce the amountof informationtobe providedtothe investingpublic.
219 I do notunderstand whythe SEC will addline- itemrequirements. IbelieveSECshould reviewthe
sustainabilityframeworkandfix itwithoutline-itemrequirements
220 I do notbelieve thereare sustainabilityissuesforwhichline itemdisclosuresrequirementswouldbe
consistentwiththe rule
221 The challenge isalack of data as new projectsitwill requireanew budgetwithnodirectimpacton the
companybottomline improvement. Theyincrease regulatoryburden,theyincrease operatingcosts, they
can reduce focuson importantlongtermstrategyforthe companyand68% of companies believe that
sustainabilityrelatedactionsanddecisionsdonotaddprofitto theirbottomline. But at the same time,they

14. 14 | ResearchconductedbyArthurMboue
can provide incentive toinnovate andpayattention toveryimportantsocial,environmentandeconomic
issues.
222 I believethere isnoneedforline itemdisclosure requirementsif youinsist thatsome companieswill deserve
some waivers,andscaleddisclosure requirements
223 Expertsinthisfieldare toodifficulttosatisfy. There isnothingwrongtothe 2/2/2010 US SEC commission
interpretative guidance. Itis a goodreference. WhatSEC can do isto revise itandadd some quantitative
and qualitativethresholdsformateriality. Ibelieve itwasnotdiscussedproperly.
224 SEC shouldeliminate andmodifysome exhibitsrequirementsinitem601, exhibit3(a) Article of
Incorporation,itison line andshouldbe requiredtobe online unlessanymaterial changestoit,exhibit3(b),
exhibit14,exhibit95can be providedonForm10-K and hyperlinkonForm10-Q unlessthere isanymaterial
changesto it. Lettake the riskto eliminateexhibit100
225 Exhibit3(a) Article of Incorporationshouldbe requiredonlinepostingandexhibit95 can be providedon
Form 10-K and hyperlinkonForm10-Q unlessthere is anymaterial changestoit
226 There isno problemonthe usefulnessof these exhibits. Theycanbe foundeasilyatthe endof the report
227 Sophisticatedinvestorsare likelytovalue mostof these exhibits
228 It isexpensive becausewe have alotof documentstoprovide here,extensive businessrelatedlanguage,…
229 We shouldcontinue toallowregistrantstoomitschedulesandattachmentforexhibitsfiledunderitem601
(b)(2). Itshouldbe some quantitative thresholdsappliedtothisomissionandexemption
230 Immaterial schedulesare uselessandawaste of time inany reports. SEC shoulddevelopguidelineswith
quantitative thresholdsandqualitative factorsonhow registrantscouldevaluate materiallypurposes
includingschedulesandattachments. The benefitisthatitwill reduce immaterial schedules. The challenge
isto designreliableguidance. SECshouldrequire registrantstodisclose how theyassessedmaterialityfor
purposesof omissionof schedulesandattachments
231 SEC shouldrequire registrantstoinclude withsuchexhibitsalistbrieflyidentifyingthe contentsof all
omittedschedules
232 Requestingaconfidential treatmentisalongprocess itiswhy SEC believesthatitmakessense. SECshould
allowregistrants toomitpersonallyidentifiableinformation(PII) withoutmakinganyformal requestfor
confidentialtreatmentSECshouldlimitthisaccommodationtoinformationcontainedinschedulesand
attachmentstoexhibits.
233 We shouldrevise item601(a)(4) toexclude immaterial amendments. SECshoulddevelopguidelinesrelated
to materialityregardingamendmenttobe requiredto.
234 SEC shouldrequire registrantstoidentifychangesinthe amendedandrestatedcontractssuchasby
underliningorhighlighting the changes. Thisrequirementisnotdifficulttocomplywith.
235 No,there isnothingwrongwithinstruction1
236 Yes,instruction1 isa true guideline forall filingstodeal withmateriality. SECdoesnotneedtoexpand
clauses(A) and(B) of instruction1.
237 No we cannoteliminate thislimitation‘anyincomplete exhibitmaynotbe incorporatedbyreference inany
subsequentfiling’
238 SEC can revise item601(b)(10(ii) toinclude quantitativethresholdsorissue aCDI. It will helptodiscourage
immaterial contractfiling. Thatsaid,the informationwillbecome more usefultothe investors
239 SEC can issue a CDI to define the typesof contractsnotmade inthe ordinary course of businessthat
registrantsare requiredtofile asexhibits
240 These contractsare important to investorsbecause theyhelpinvestorsunderstandthe resultsof operations
includingpastorfuture,IBNR,ARor/and cash flow. No,SECshouldnot limitsubparagraph(ii) tonewly
reportingregistrants. No, SECshouldnoteliminate subparagraph(ii) andrequireregistrantstofileonly
material contracts that are to be performedinwhole orinpartor afterthe filingof the report. Aslongas the
contracts remainmaterial toinforminvestorsaboutthe registrants’resultsof operationsandfinancial
conditions,itmustbe filedwiththatexhibit. Underincurredbutnotreported,the contract remainmaterial

15. 15 | ResearchconductedbyArthurMboue
informationforthe registrant’sinvestors
241 Yes,SEC shouldexpandthe typesof contractunderitem601(b)(10)(ii)
242 SEC can revise item601(b)(10)(ii)toinclude categoriesof contracts. SECcan use relevanttime frame (about
a fiscal year),percentage thresholdandtopmanagement/directorsinvolvement. The benefitis thatitwill
focuson material contractand the challenge istoproperlycomplywiththe rule
243 The informationoncontract filedunderitem601(b)(10)(ii)isveryimportanttothe investingpublic. It
dependsto the materialityof the differenttypesof contract
244 Immaterial inamountisverynecessarystandardbywhichtodetermine whenacontractneedstobe filed.
Registrantsmusttestthisstandardfor inclusionor exclusion. Inmyview,if acontract is material inamount,
it issignificant. Itwill make sensetorevise item601(b)(10)(ii) toexcludeonly contractsthatare immaterial
to amountand significance. Yes,itwill facilitate compliance if SECcan revise item601(b)(10)(ii) tostate in
the affirmative thatregistrantsmustfileall material contractsmade inthe ordinarycourse of businessthat
fall withinone ormore categorieslistedbelow…
245 Yes,it justmeansthat relatedpartyinvolvedandthe amountisover$120,000, the contract mustbe filed
therefore thisinformationisuseful toinvestors. Itwill make sensetorevise item601(b)(10(ii) toinclude
relatedpartytransactionunderitem404(a). The benefitisthatitwill limitkickback. Challenge isthatitfails
to addressthe aggregatednature of these contracts,all of themcan come fromseveral relatedparties
246 SEC can attemptto consolidate item601(b)(10)(i) and601(b)(10)(ii) torequireall contractsthatare material
to an understandingof the registrantfinancial conditionandresultsof operationstobe filed. All the
contracts will be capturedwiththisrequirement. Thisinformation doesenhance investors understandingof
the registrantfinancial conditionandresultsof operations. The challenge isthatsophisticatedinvestorswill
start micromanage the company. The benefitisthatitdoesprovide clarityandconsistencytothe registrants
intheirefforttocomplywhile beingtransparencytoinvestors
247 SEC shouldconsolidateall qualitativeandquantitative thresholdsfordeterminingwhencontractsidentified
initem601(b)(10)(ii) andadoptit
248 SEC can revise item601(b)(10)(ii)(B) todefine‘substantial dependence’. SECshouldlookat‘relatedparties’
and ‘contingency’inordertodefine ‘substantial dependence’.
249 Quantitative thresholdswillbe basedonthe size of the registrantmarketcapitalizationortotal assets.
Quantitative thresholdswillbringconsistencyandclaritytothe disclosure while reducingimmaterial
disclosure. Itwill be goodtotie quantitative thresholdstomarketcapitalizationortotal assets
250 It will addclarityto the registrantefforttocomplyif SECdefines‘dependstoa material extent’. Itisnot
necessarytomake distinctionbetweenfranchise,licenseagreementsandthe like.
251 I preferwhenquantitative thresholdsare basedon total assetsinsteadof fixedassets(see Dot.com),that
meansrevisingitem601(b)(10)(ii)(C) tofix itto10% of total assetsthresholds. Iwouldnoteliminatea
prescriptive thresholdforprinciplebasedrequirements.
252 Item601(b)((10)(ii)(C) shouldnolongerfocusonfixedassets. SECshouldexpandthisitemtoincludeIP
(intellectualproperty),patentlicenses,…Yes,alittle ‘clind’oeil’toitem2.01of form8-K will be appropriated
because 10% of total assetsmakessense.
253 The informationprovidesbyregistrantintheirauditor’spreferabilityletterismeaningless. If SECcould
developsome kindsof quantitative andqualitativethresholdstriggeringanychangesitwouldhave been
helpful
254 There isno particularlanguage addingclarity,consistencyandqualitytothe preferabilityletter. Rarely,
there isany real reasonfor changesotherthanto improve the registrant’sbottomline. Itdoesnotdepend
on the nature of the change
255 SEC shouldrevise item601(b)(18). The same auditorcan onlyissue anunqualifiedopiniontothe disclosure
while readinghispreferabilityletter. The eliminationof thisexhibitwill create alotof changeswithout any
suspicionof fraudfromthe investingpublic
256 It isnot appropriate tomake any indicationbutthe investingpublic(sophisticatedinvestors) will suspect

16. 16 | ResearchconductedbyArthurMboue
these changesincludingtheirtimingandthe improvementtheybringtothe bottomline,leverage,rating,…
257 SEC shouldrevise item601(b)(21) torequire registrantstodiscloseall subsidiaries. The benefitisthatitwill
keepthe registrantfromhidingsome small subsidiarieswithhighaggregatedvalue
258 No,SEC shouldnotexpand the exhibitrequirementtoinclude additional disclosureaboutthe registrant’s
subsidiaries
259 Yes,SEC shouldrequire registrantstoinclude anorganizationchartor corporate structure chart or similar
graphicdepictingtheirsubsidiariesandtheirbasisof control. Thischartcan helpinvestorsunderstand
where the registrantresultof operationsandfinancial conditionsare comingfrom. SEC shouldrequire an
organizational chartas exhibitof the annual report. There isno challenge todesignthischart
260 Thisdefinitionof ‘significantsubsidiaries’excludes‘insignificantsubsidiaries’. Thisdisclosure shouldnot
exclude anysubsidiaryatall
261 SEC shouldrequire registrantstodisclose theirLEI (Legal EntityIdentifier) andthe LEI of theirsubsidiarieson
the listof subsidiariesfiledunderitem601(b)(21). The benefitisthatinvestorswill know the existence of
the reference code touniquelyidentifyalegallydistinctentitythatengagesinafinancial transaction. Asyou
knowthe commissionprescribesdisclosureof anobligorLEI withrespecttoa rating actioninvolvingacredit
ratingof an obligorasan entitysoit doeshave effect. Asof December2015, the cost of obtaininganLEI
fromGlobal Masters EntityIdentifier(GMEI) utilityinthe USwas$200 plusa $19 per recordsurcharge for
the LEI Central OperatingUnit.
262 At thistime,Ido not see anyreasonto require LEI,maybe financial servicesregistrantsmayneeditbutSEC
needstoperform more researchonthisutilizationbefore makingadefinitivedecisiononthe LEI
requirement
263 SEC shouldmake a goodresearchstudybefore torequire ittolarge acceleratedfilersorwell-known
seasonedissuers(WKSI)
INFORMATIONFOR INVESTMENTAND VOTING DECISIONS- SCALED REQUIREMENTS
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 Asymmetricinformationbetweeninvestorsandmanagersof new companiesare the highestbecausethere
isnot historical 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 because of scaleddisclosures
271 SEC shouldconsiderscalingitem701for the SRC. Item 404 needstobe visitedtorestore relatedparty
disclosure. SRCanditsmanagers deal too muchand questionablywiththeirrelatedparty
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

17. 17 | ResearchconductedbyArthurMboue
274 Definitely,we shouldnotaddunnecessaryexpensive dataandpagesnobodyuses orwill use
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 registrantshareholder value willnotbe maximized. Can
theydisclose itmore voluntarily?
278 Yes,the investingpublicbenefits10-Qreport. Bigbenefitisthatitprovidesgreaterconfidence andregular
up to date informationtoinvestorswhoneedsreliance totrade share betweentermsforwedding,funeral,
donationto giftedchildren,… Quarterlyreportishere tostay
279 Because of consistencyandcomparability,the reportingrequirementshouldbe the same forall typesof
registrants. These quarterlyreportingrequirementsshould NOTexclude SRC
280 No,all categoriesof registrantsshouldfile quarterlyfinancial report,Iwill findoutthe exceptiongivento
financial service companies
281 Filingamonthlyreportwill be tooexpensiveintermof compliance andadministrative coststoanytype of
registrants
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 a verygood tool for
investmentandvotingdecision
PRESENTATION AND DELIVERY OF IMPORTANT INFORMATION
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
286 Crossreference helpstoeliminaterepetitionbecausearegistrantmayprovide all the informationrequired
by bothor many requirementsinone locationwiththe second,thirdetclocationsimplycontainingacross
reference backtothe firstlocation
287 Item303 wouldbenefitfromgreateruse of crossreferences. SECshouldrevise item303 to encourage the
use of crossreferences. No,SECshouldnotamenditem303 to meetthe original disclosure objective
288 For readers,the only inconvenientprocessis togoback and forthsearchingforthe firstlocationwhere the
informationis. There is achallenge causedbycrossreferencingwhenitcomestocomparability among
registrants
289 I do notthinkit isa greatideato provide certaindisclosure in the same locationineveryfiling
290 The use of cross referencescanreduce complianceandadministrativecostsbecause itdoesreduce the
numberof pagesin the disclosure.
291 Item303 wouldbenefitfromacross reference torelatedormore comprehensive disclosureindifferent
parts of the filing
292 Crossreference doesnotmake adisclosure more readable. Itmakesitlessvoluminous. Here youhave to
stopand go back to findthe indicatedlocationwhere the informationis

18. 18 | ResearchconductedbyArthurMboue
293 Item303, notesto the financial statement,financial statementandmore are where cross referencesdonot
satisfythe SEC readabilitybecause readersfinditdifficulttolocate the indicatedinformationwhenitisset
elsewhere inthe report. Financial statementandnotestofinancial statementare partsof the disclosure
where crossreferencescanbe prohibited
294 SEC shouldreconsiderrulesthatseektoprovide investorswithinformationinasingle locationaftergood
assessmentof theirutilization (strengthsandweaknesses)
295 If the purpose istoincrease the reportreadability,Idonotsee how the use of referenceswill increase
consistencyinlocationof informationacrossperiodsandregistrants
296 Previouslydisclosedinformationalongwithrecentdevelopmentsinsingleself-containedfilingcanhelp
investorunderstandthe disclosure. If the informationhasnotchanged,repeatingthatinformationwill help
investorunderstandsthisdisclosure. Providingpreviouslydisclosedinformation alongwithinformationthat
isnewor has changedwill helpthe readersfocusonchanges. If the SEC requiresregistranthighlights
changesintheirreport,it will be problemof readabilityandcompletenessthatmeanslazyreaderswillonly
focuson changedinformationwithoutunderstandingthe disclosure asawhole
297 SEC shouldnotchange the state of the incorporationbyreference. Forprofessionalandsophisticated
investors/readers,incorporationbyreference isasignal forhimthat thisinformationisadéjàvufor himand
he has to allocate lesstime onit. In short,ithelpsreadertotime theirreadingverywell
298 Item303 MD&A shouldremaindirectsourcesof disclosureinformationratherthanpermittingthe use of
incorporationbyreference. The incorporatedinformation,5yearsor younger,shouldbe locatedinthe filing
made viaEDGAR. It doesnotmatterof the sectionsas longas it was filedviaEDGAR.
299 Providinghistorical andrecentinformationwithinasingle self-containedfilingshouldnotbe a matterof
sizesof the registrantsbutitcan be a matter of disclosinghistorical data.
300 Yes,because Form8-A and othersformsallow historical incorporationbyreference,registrantsshould
presenttheircompletecore disclosure. Thisis the onlycategoryIcan thinkof at thistime
301 SEC shouldexpandregistrantsabilitytoincorporate byreferencetoexhibits becauseitwill limitthe number
of exhibits butitwill requireefforttofindthe information
302 Flexibilitytouse incorporationbyreferencecanreduce compliance andadministrationcoststoregistrants
relatedtothe preparationanddisseminationof disclosuresbecause itwillnotcostthemto directreadersto
theirpreviousfileddocumentsinsteadof preparinganew one.
303 If the SEC revise rulestopermitregistrantstoincludeexternal hyperlinkintheirfilingtosatisfydisclosure
obligationitwill be problemwiththe adopteddocuments anditsinformation. The hyperlinkeddocuments
may turnout to be too bigand complex toadopt. The documentmustbe printable tosatisfy bothonline
and printreaders. The whole purpose of thisprocessis toadd clarityand simplicitytoall readers. If itserves
onlyonline readers,FDregulationbecomes anew speculation (tooselective group). Printoutmustbe
available atthe time hyperlinkwill be disclosedandposted online.
304 The increaseduse of hyperlinkswithfrequentaccessto sitesmaynotadd qualityandattractivenesstothe
disclosures. Also,issueswillbe rise aboutcomparabilitybetweenonline readersandprintreaders. SEC
shouldrequire informationinasingle filingandlocation
305 It isnot necessarytorequire hyperlinks withanycrossreference tospecificinformation. The benefitisthat
it will give anideatothe readerwhatit will readafterthe clickbut alsoitviolatesthisprocess (disclosure
effectiveness) because itwill be addingimmaterialandrepetitiveinformation. It will be waste of time and
money. Companydoesnotownthe informationincorporatedbyreference,itdoesnotmatterthat
informationisstill onthe companywebsite
306 No,SEC shouldnoteliminate the requirementsunderRule 12b-23to attack informationincorporatedby
reference becauseitaddsclaritytothe disclosure
307 Registrantcan or cannotincorporate byreference fromtheirownwebsite. Itwill require littlechange in
liabilityforthisinformation
308 The challenge isthatnavigabilityinbigcompanywebsiteforthe firsttime,ittakesalittle more time.

19. 19 | ResearchconductedbyArthurMboue
Investorswill needjustalittle more e-skill. Investorswhoneedreportinprintmayneedthe incorporated
documentsenttothem,it maybecome toovoluminous. Itwill impactsophisticatedinvestorsor3rd
party
whoengage inautomatedprocessingonEDGAR
309 Investorsseekinginformationfrom3rd
partysourceswill need aninternetaccessandknowledge tonavigate
some websitesof the providers. The challenge istofindareliable andknowledgeable 3rd
party provider
information
310 Witha gooduse of searchengine,there isnotdifferencebuthistorical documentsare difficulttofindwhile
navigatingcompanywebsite. Normally,ithastobe newlyposted
311 Most informationonIR(investorrelationorinvestorcommunication) are filedandpostedforcompliance
reasons. That meanseverydocumentsincorporatedbyreference isconsideredfiled andisruledby18, 11
and 12. Registrantscanincorporate webpagesorstandalone documentsandmake sure thatmanagement
didread thatdocumentagainand again. The bigproblemwiththistype of incorporationbyreference isthat
registrantcan correct (update) thisdocument information,if the registrantdoes,itisaviolation,afraud(PDT
documents,dotheyshowupdate date?) and18 will applybecause thisdocumentorwebpage wasadopted
inthe fileddocument. If the registrantgoesoutof business,the incorporatedbyreference documentsare
not saved,afterthe death,the review will be incomplete (10yearsretentionmaywork)
312 Witha change indocumentretentionpolicy(duration) WKSIcanbe consideredinthe pilotprogram(tryout)
313 We have to take intoconsiderationadocumentretentionpolicy(duration) andvolumeof the web,SECpilot
program (tryout) caninclude incorporationbyreferenceof exhibits
314 The omissionof the requiredinformationfrom filingwhenthe informationisprovidedonthe registrant’s
website ispossible butthe waytheywrite themcannotsatisfythe historical review (chronological focusmay
be,numberof employeesperquarter,companyaddress,…)
315 For preservation,integrity,accuracyandtimeliness,itmakessense torequire disclosure of the information
inthe registrant’sfilingthatisalreadyavailable onthe registrantwebsite. Itdependsonthe nature of the
information,the eliminationof disclosure becausethey are requiredtobe available onthe registrantwebsite
may nothave any impacton the accuracy and transparencyof the disclosure if the informationisnotthat
information(updatedovernight)
316 No,SEC shouldprohibitincorporationbyreference from sourcesotherthanaregistrant’sfilingorits
website. Idonot believe thatincorporationbyreferenceto3rd
party sourcesiswarranted.
317 Sophisticatedinvestorsandprofessional3rd
partiesprovidersmayvalue disclosure made availableon
registrantwebsites
318 Permittingregistrantstoincorporate informationfromtheirwebsiteshelpsregistrantsintermof volume of
the disclosure byconsequentcompliance andadministrativecosts(timeliness,effort…)
319 Currentdisclosure requirementsconsiderthe needforbothstandardizedandflexibilityinpreparation
320 A combinationof prescriptive andprinciple baseddisclosure canenhance the presentationof the disclosure
by registrants
321 A prescriptive orderandformatfor presenting informationannual orquarterlyreportscanimprove
readabilityandcomparabilitybutitmaycreate a little problemunderstandingaspecializedcompany.
Standardizedrequirementsenhance the abilityof investorsand3rd
party to use thisdisclosure becausethey
knowwhatto expectfromthisdisclosure (order,design,…)
322 SEC mustcome upwithsome orderbasedon the sizesandindustries. Duringthistrial time,Ididread
financial reportsIdidnotfinishbecause of lackof itemsnumbers…. Itisnot goodwhenitis disorganized
323 Itemnumbersandcaptionadd clarity,navigability,consistency,attractivenessandeffectiveness tothe
disclosure
324 SEC shouldrevise item102(properties) torequirestandardizedtabularpresentation. Itsadvantagesare that
it will improveclarity,comparabilityandnavigabilitytothe report
325 Item1B can be presentedinquestionandanswerformat. SECshouldonlypermitit,itshouldnotbe
required,justoptions toexercise byregistrants

20. 20 | ResearchconductedbyArthurMboue
326 Item201 can take the form of check the box presentation. Itcan alsowork withitem304. It can add clarity
and navigability. The disadvantage isthatreadersmaynotread the narrative information
327 Some part of MD&A item303 needsmore flexibility atthe same time there isa needforprescriptiveorderto
it
328 Standardizedformatincreasescomparability,valuationaccuracy,investmentefficiencywhile reducingthe
cost of acquiringthat information
329 Otherapproachesto layeringorlayereddisclosure beside summaryinformationare taps (organize
informationbytopicmayworkfor item303)
330 The qualityof the structureddisclosure canbe enhancedbyreducingnumberof errors,missingamountsand
calculation,complexityandincreasing usabilityof data
331 The changesto the EDGAR systemthatSEC shouldmake torenderthe structureddisclosure filedby
registrantsisnotcombiningororganizingintostructureddatasetsand postedfordownloads,itisjustto
discontinue thisprogram, mostimportantinformation(managementstartspresentationwithwhathe/she
believesisthe mostimportantinformation)andbasicinformation(segregatedbasedonchangesornot
changes)
332 Axistagallowsa filertodivide reportedelementsintodifferentdimensions(revenue bygeographical area,
fairvalue measurementlevels andcomponents of total equity),itlookssomehow useful tosophisticated
investors. Whendisclosure are unique tothe company,there isuse of combinationof standardizedand
principle orienteddisclosure. Ido notknow how thiscustommethodwill be addedtothe automated
analysis
333 May be some item5, 6, 7A can accommodate structureddata but we needtoprove usabilityof dataor
unnecessarybecause datamustbe usedbyreasonable investorinmakingvotingandinvestmentdecision
334 If we consideraddingstructureddatarequirementsfordisclosure inperiodicreports,we needasimple level
to lowerthe costand complexitytoregistrantandinvestorsof preparingthe report,accessing,collectingand
analyzinginformation. Registrantsshouldidentifyand labelspartsof the disclosure toimprove readability,
clarityand navigabilitytothe reports
335 The availabilityof structureddatainregistrantsperiodicreportsaffectnegatively timestoreviewthe
disclosure byaverage reasonable investor. The more armedwithquantitativeandqualitative dataand
technologies,the more sophisticated investorswill preferit. Itisnot foraverage investor. Maybe there are
othermethodsof structureddata disclosure addingusefulnesstothe disclosure
336 3rd
party data aggregatorsprovide toinvestors,these dataare sometimesgoodsubstitutetothe one
developedthroughstructureddisclosure
337 SRC cannotaffordit and some donot have enoughdatato provide scaleddisclosure,theyshouldbe exempt
338 Theysay havingXBRL andotherstructureddata submittedasa simple exhibit,Iwill addthatthere isa need
for auditeddatato addaccuracy to thisdisclosure
339 Highlycomplex companieshave toomuchcomplex datatoincrease their utilitywithtag;theyshouldbe
exempttoprovide more complexdatatotheirinvestors
340 I am sure that there are othertechnologiesavailable toincorporate intothe disclosure butwe needacareful
research, reviewandtrial