SEC voted to adopt amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), or changes in the information environment. The amendments will be effective 30 days from publication in the Federal Register.
The amendments are intended to simplify and update the disclosure of information to investors, including long-term Main Street investors, and reduce compliance burden for companies without significantly altering the total mix of information available to investors. SEC is also referring to certain disclosure requirements that overlap with, but require information incremental to, GAAP to the FASB for consideration for potential incorporation into GAAP. The amendments would eliminate certain:
- Redundant and duplicative requirements, which require substantially similar disclosures as GAAP, IFRS, or other SEC disclosure requirements.
- Overlapping requirements, which are related to, but not the same as GAAP, IFRS, or other SEC disclosure requirements.
- Outdated requirements, which have become obsolete as a result of the passage of time or changes in the regulatory, business, or technological environment.
- Superseded requirements, which are inconsistent with recent legislation, more recently updated SEC disclosure requirements, or more recently updated GAAP.
The amendments apply primarily to public reporting companies (including foreign private issuers). Certain amendments also apply to other entities SEC regulates, including Regulation A issuers, investment advisers, investment companies, broker-dealers, and nationally recognized statistical rating organizations.
Effective Date: FR + 30 Days
Keywords: Americas, US, Securities, Accounting, Disclosures, GAAP, IFRS, FASB, SEC