This article summarizes significant accounting and reporting updates from the Securities and Exchange Commission. All SEC Final Rules can be accessed via the SEC website under the Regulation section, Final Rules, here. All SEC Proposed Rules can be accessed via the SEC website under the Regulation section, Proposed Rules, here.
Final SEC Guidance
Rule and Form Amendments Applicable to Emerging Growth Companies
Issued: March 2017
Summary: The SEC has adopted certain technical amendments to several rules and forms to reflect securities law amendments included in the JOBS Act of 2012. Title I of the JOBS Act created the “emerging growth company” filer status, which permits reduced disclosures in an IPO registration statement and provides a temporary exemption from certain financial reporting and governance requirements thereafter.
In addition to the form and rule amendments, the SEC also adopted new rules to include an inflation-adjusted threshold in the definition of an emerging growth company.
For additional information, refer to our recent article on the topic, Rule and Form Amendments Applicable to Emerging Growth Companies.
Effective Date: The amendments became effective upon publication in the Federal Register.
Proposed SEC Guidance
Inline XBRL Filing of Tagged Data
Issued: March 2017
Comment Deadline: May 16, 2017
Summary: Issuers have historically been required to provide XBRL data in an exhibit to their filings. Consequently, issuers copy their financial statement information into a separate document and tag it in XBRL. The SEC’s proposal would require issuers to embed XBRL tags directly in their financial statements using a format known as Inline XBRL in lieu of providing tagged data in a separate exhibit.
Other SEC Activities
Nullification of Resource Extraction Issuer Disclosure Rule
Summary: In February, President Trump signed a resolution passed by Congress which nullifies the SEC’s resource extraction issuer disclosure rule (Rule 13q-1). Rule 13q-1 would have required resource extraction issuers to disclose information about certain payments made to United States and foreign governments for the commercial development of oil, natural gas, and minerals. Additional rules implemented as a result of the Dodd-Frank Act are being scrutinized.
For additional information, refer to our recent article on the topic, Dodd Frank SEC Rules One Nullified and Others Scrutinized.
For questions related to the matters discussed above, please contact us.