Certain countries are developing, or have developed, requirements relating to the measurement and/or disclosure of derivative financial instruments and other derivative securities. Companies with derivative securities are encouraged to contact the securities regulatory authority in the host countries to determine whether such requirements exist and what information is required to be provided. The specific requirements in certain countries are referenced below.
Japan - The definitions of the derivatives are set forth in the Ministerial Ordinance for Financial Statements, Section 8. Disclosure requirements for all derivatives are set forth in the Ministerial Ordinance for Financial Statements, Section 8-8. These informations are disclosed in the footnotes of the financial statements.
Ontario and Quebec - The requirements are set forth in CICA Handbook Section 3860: Financial Instruments - disclosure and presentation.
Spain - Derivative securities have been regulated in the specific disclosure requirements developed by the CNMV for banking and credit card companies' prospectuses.
The United States - In January 1997 the SEC adopted rule amendments that supplement the disclosures that were previously required by generally accepted accounting principles and the Commission's rules, to make information about derivative financial instruments and certain derivative commodity instruments more useful to readers assessing the market risk associated with these instruments. The Commission has added Item 305 to Regulation S-K to address certain of these matters.
