Vexed Over Brexit Disclosure

The WSJ is reporting that, in a speech to the FEI Current Financial Reporting Issues Conference in New York, SEC Chair Jay Clayton advised the audience that the SEC is "sharpening its focus on corporate disclosures about the risks associated with the U.K.'s exit from the European Union....'My personal view is that the potential impact of Brexit has been understated....I would expect companies to be looking at this closely and sharing their views with the investment community.'" To be sure, in terms of potential disruption, some practitioners have likened the havoc that Brexit could create to the chaos anticipated from the Y2K bug! But even if that analogy turns out to be a bit too apocalyptic, as we approach 10-K season, companies should consider how Brexit could affect their businesses and whether that impact merits disclosure.