The act requires public disclosure to the US Securities and Exchange Commission of payments made to the US and foreign governments, relating to the commercial development of oil, natural gas, and minerals.
The US Senate has passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act, subject to Presidential approval, introduces a large number of reforms to the US financial system in regulation, investor and consumer protection, corporate governance and reporting.
The Act also introduces new disclosures in relation to extractive activities around amounts paid to governments. The Act requires:
· Public Disclosure. Requires public disclosure to the United States Securities and Exchange Commission (SEC) of payments made to the US and foreign governments relating to the commercial development of oil, natural gas, and minerals
· SEC Filing Disclosure. The SEC must require those engaged in the commercial development of oil, natural gas or minerals to include information about payments they or their subsidiaries, partners or affiliates have made to the US or a foreign government for such development in an annual report and post this information online.
· These reforms effectively introduce the 'Publish What You Pay' (PWYP) proposals which are currently being considered as part of the IASB's Extractive Activities project. There have already been calls for the IASB to adopt the equivalent requirements in the Discussion Paper as soon as possible. Any response by the IASB would be limited by its due process requirements, including in the first instance a decision by the IASB to take the Extractives Activities project onto its agenda.
© Deloitte LLP
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