This KPMG report covers section 1504 of the Act, which requires all US and foreign companies reporting to the Securities and Exchange Commission (SEC) that extract oil, natural gas or minerals, to provide data about any payments to governments, in the US and elsewhere, for the commercial development of these resources. The provision has significant implications for data collection and subsequent audit processes at these companies and will lead to the release of a considerable amount of new financial data to the public.
Section 1504 should be viewed in the context of a growing number of regulations promulgated in the US and elsewhere that cover company-to-government transactions, international business dealings, resource extraction and supply chains. Seen in this light, Section 1504 may require a broader strategic response from companies than simply complying with a single provision of one piece of legislation.