Financial Disclosure

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Financial Disclosure

Financial Disclosure


In this report, we will be discussing the facts about financial disclosure of information in regards with Merrill Lynch Investment Solutions. Merrill Lynch was founded in 1914 by Charles E. Merrill and Edmund C. Lynch. On the 1 November 2007, the CEO, Stanley O'Neal resigned in the wake of widespread criticism of his handling of the subprime crisis, it still was thanked by cashing a check for $ 160 million compensation. The bank was accused with the bank losses of more than $ 8 billion. He was replaced by John Thain. On 15 September 2008, Bank of America (BoA) bought Merrill Lynch for $ 50 billion, the latter having already lost 52 billion since the subprime crisis. In December 2008, just before its takeover by BoA and despite losses of USD 27 billion in 2008, Merrill Lynch paid approximately $ 3.6 billion in bonuses, 696 of its executives receiving at least one million USD. Merrill Lynch also received nearly $ 7 billion in autumn 2008, that he was American International Group (AIG), which was able to pay because the latter group was itself bailed out by the U.S. Federal Reserve (Fed).


Disclosure is basically a system of actions by the issuer, and is aimed at informing shareholders and other market participants on the financial and economic situation of the issuer's taken them to actions and events that may affect the value of securities. According to Disclosure provided in International Financial Reporting Standards (IFRS), it is necessary for financial service provider like Merrill Lynch Investment Solutions, in connection with which many issuers voluntarily offer additional information to improve the confidence of shareholders and improve its image.

Disclosure stock companies subject to a number of laws and regulations, the most important are: the Law "On Joint Stock Companies"; Law "On competition and restriction of monopolistic activity on commodity markets", Federal Law "On the Securities Market", the Regulation "On Disclosure information by issuers of securities." Under the law, the issuer must disclose the commission of certain acts or the occurrence of certain events.

Disclosure of information about the Affiliates.

Open Joint Stock Company (JSC), as well as a closed joint stock company (JSC), the initial public offering of bonds or other securities must disclose information about the affiliates. These include members of the Board of Directors or another managerial body, the person is the sole executive body, the persons who have the right to dispose of more than 20% of the votes attaching to shares in the authorized (share) capital, etc. In other words, affiliates - a person that can affect the activity of the company and recognized as such by the legislation of the Russian Federation. Disclosure of Company and on affiliates involves placing on the site "list of affiliated persons." Disclosures about the affiliates are at least two days after the end of the quarter, the same period should be taken when making changes to the list.

Disclosure of Annual Financial Statements.

Disclosures in the financial statements is the most important and responsible view of the disclosed data. Annual accounting (financial) statements must include: balance sheet, income ...
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