The SEC announced that it has voted to adopt amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other SEC disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), or changes in the information environment. The amendments change disclosure requirements in a number of SEC rules, including Regulations S-X and S-K.
The amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The amendments are also part of the SEC’s efforts to implement the Fixing America’s Surface Transportation (FAST) Act, which, among other things, requires the SEC to eliminate provisions of Regulation S-K that are duplicative, overlapping, outdated, or unnecessary. The amendments are intended to simplify and update the disclosure of information to investors, including long-term Main Street investors, and reduce compliance burdens for companies without significantly altering the total mix of information available to investors.
These amendments apply primarily to public reporting companies (including foreign private issuers). Some of the amendments also apply to other entities the SEC regulates, including Regulation A issuers, investment advisers, investment companies, broker-dealers, and nationally recognized statistical rating organizations.
The SEC also referred certain disclosure requirements that overlap with, but require information incremental to, GAAP to the FASB for consideration for potential incorporation into GAAP.
The amendments will be effective 30 days from publication in the Federal Register.
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