|Author (Person)||Colarusso, Eliana|
|Series Title||European Business Law Review|
|Series Details||Vol.29, No.5, 2018, p.791–812|
|Publication Date||October 2018|
|Content Type||Journal | Series | Blog|
This paper analyses the possible links between the precautionary principle – as interpreted by the European Commission and the European Court of Justice and broadly employed for health and environmental protection – and the listed companies duties of risk reporting and forward-looking information disclosure.
Taking into consideration that the IAS/IFRS and the European frameworks are already strewn with rules concerning forward-looking information, the paper proposes to apply the precautionary principle to this information, analysing the possible issues arising from the proposal and the related solutions.
Positive effects of a disclosure regime based on the precautionary principle emerge: an increase in transparency in the financial markets, a unique interpretation criterion in the doubtful cases, incentives to careful risk monitoring and timely intervention also in situations of persistent scientific uncertainties and encouragement of effective public and private enforcement.
|Countries / Regions||Europe|