SEC Official Clarifies Firms’ Disclosure of Tariff Uncertainties

Companies should disclose to investors if uncertainties over US trade wars and pending tax law changes could materially affect their business, an SEC accounting official said.

Even if companies can’t assess the likelihood of a “known uncertainty” hitting their business, disclosure in management’s discussion and analysis is required if that risk would be reasonably likely to impact their financial condition or operations, Heather Rosenberger, chief accountant for the US Securities and Exchange Commission’s division of corporation finance, said Thursday at a Baruch College conference.

Rosenberger said her team at the Wall Street regulator has received questions about what disclosures are ...