The Securities and Exchange Commission (SEC) continues to emphasize the primary role and responsibility assumed by management and audit committees in providing meaningful and transparent information to investors. The uncertainties in the current economic and regulatory environment make the preparation of high-quality annual reports increasingly challenging. We have prepared this report to assist management teams identify and understand the areas most frequently commented on by the SEC.
The information summarized in this report is based on comment letters issued to companies in the automotive sector and closed by the SEC from October 1, 2011, to October 31, 2012. We have also provided relevant examples of recent comments to aid companies in preparing robust disclosures that are consistent with relevant accounting and reporting guidance.