In the staff’s view, may a registrant make intentional immaterial misstatements in its financial statements?
Interpretive Response: No. In certain circumstances, intentional immaterial misstatements are unlawful. Considerations of the books and records provisions under the Exchange Act Even if misstatements are immaterial,51 registrants must comply with Sections 13(b)(2) – (7) of the Securities Exchange Act of 1934 (the “Exchange Act”).52 Under these provisions, each registrant with securities registered pursuant to Section 12 of the Exchange Act,53 or required to file reports pursuant to Section 15(d),54 must make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the registrant and must maintain internal accounting controls that are sufficient to provide reasonable assurances that, among other things, transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP.55 In this context, determinations of what constitutes “reasonable assurance” and “reas
Related Questions
- In the staff’s view, what aspects of a registrant’s loan loss allowance internal accounting control systems and processes would appropriately be addressed in its written policies and procedures?
- When applying SAB 101, what is the staffs view of the pool of contract acquisition and origination costs that are eligible for capitalization?
- Will all faculty, staff and students see the same view of myChargerNet?
