Alice Hsu Quoted by The Wall Street Journal on Impact of Coronavirus on Corporate Financial Filings
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The Wall Street Journal has quoted Akin Gump corporate partner Alice Hsu in the article “Companies Are Grappling With How to Report Coronavirus Risks.” The article reports that the disruptions caused by coronavirus are coinciding with deadlines for filing annual reports due next month, as well as decisions about filing paperwork for initial public offerings.
Typically, the article says, the risk disclosures in these filings would contain information on factors that could materially affect a company’s financial operations. The challenge right now, it notes, is providing investors with accurate information about the future when information about the outbreak is changing by the day.
One factor that would likely improve the quality of disclosures is more scientific information about how the virus is spread, said Hsu. That would put companies in a better position to assess the future risks.
“When the scientists get a little more information on how to address it, then I think companies will be in a better position to respond,” Hsu added.