SEC Approves 2018 GAAP Financial Reporting Taxonomy
Announced in a press release by the Financial Accounting Standards Board (“FASB”), the Securities and Exchange Commission (“SEC”) has accepted the 2018 GAAP Financial Reporting Taxonomy. This year’s edition features accounting standards updates and other suggested improvements. The market regulator has also accepted the 2018 SEC Reporting Taxonomy (“SRT”). A new edition this year, the SRT covers the essentials needed to meet provisions for SEC-required financial schedules, condensed consolidating financial information for guarantors, and disclosures regarding oil- and gas-producing activities. FASB staff will discuss the 2018 GAAP Financial Reporting Taxonomy and SRT tomorrow during its live webcast . The event will start at 1:00 pm. ET.
SEC to Help Companies Disclose Tax Reform Effects
At a recent SEC Speaks event in Washington, D.C., Securities and Exchange Commission (“SEC”) chief accountant Wesley Bricker told attendees that the commission intends to help public companies with disclosures on their periodic filings related to the impact of the Tax Cuts and Jobs Act (“TCJA”). In his remarks, Bricker referenced Staff Accounting Bulletin No. 118, (Topic 5.EE), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was issued in December 2017. The bulletin covers the judgments and assumptions that a company’s management must make when including the effects of tax reform into financial statements. It also. Read More.
SEC Delays Compliance Date for Liquidity Risk Rule
The Securities and Exchange Commission (“SEC”) has postponed the compliance date for specific provisions in a rule requiring mutual funds to oversee their risk and ability to redeem investors’ shares. Announced as part of Release No. IC-33010, Investment Company Liquidity Risk Management Programs; Commission Guidance for In-Kind ETFs, the six-month delay gives fund companies additional time to classify risks in their investment holdings under Rule 22e-4 of the Investment Company Act of 1940. The new compliance date for larger fund groups is June 1, 2019, and the compliance date for smaller funds is December 1, 2019. The new compliance dates. Read More.
JOBS Act Exemptions to Expire Soon for Emerging Growth Companies
Businesses that went public under the designation of emerging growth companies shortly after the JOBS Act of 2012 was enacted could soon lose their exemptions from the law. The five-year exemptions included in the JOBS Act, which curtails regulations for young companies that raise investor funds and encourages initial public offerings, are set to expire soon. Once the exemptions expire, hundreds of young companies will be subject to various accounting, disclosure and corporate governance requirements foreign to them. One exemption set to go away relates to Section 404(b) of the Sarbanes-Oxley Act. Section 404(b) requires an external auditor to review. Read More.
Topics: Dodd-Frank Act, Emerging Growth Companies, JOBS Act, Jumpstart Our Business Startups Act "JOBS Act", Pay Ratio Disclosure, Sarbanes-Oxley Act "SOX", SEC, Securities and Exchange Commission "SEC"
Supreme Court Tightens Dodd-Frank Whistleblower Protections
In a unanimous ruling, the Supreme Court narrowed the definition of a whistleblower under the Dodd-Frank Act. The U.S. Court of Appeals for the Second, Fifth and Ninth Circuits had different rulings over the interpretation of the whistleblower protections, but the Supreme Court ultimately decided on a narrow definition. The decision stems from the case of Digital Realty Trust v. Somers, which involved the termination of former Digital Realty Trust vice president Paul Somers after he reported possible violations to management. Somers claimed that the Dodd-Frank whistleblower protections, which bar companies from retaliating against employees who report misconduct under certain. Read More.
SEC Approves Revised Cybersecurity Disclosure Guidance
On February 21, the Securities and Exchange Commission (“SEC”) unanimously approved new interpretive guidance concerning public company disclosures related to cybersecurity. The updated guidance in Release No. 33-10459, Commission Statement and Guidance on Public Company Cybersecurity Disclosures, outlines the SEC’s thoughts on public companies’ disclosure requirements regarding cybersecurity risks, threats and incidents. Release No. 33-10459 also encourages public companies to implement cybersecurity policies and procedures and to apply disclosure controls and procedures, insider trading prohibitions, and Regulation FD and selective disclosure prohibitions. The SEC believes the interpretive guidance will help public companies provide more transparent and detailed disclosures about potential threats to their computer systems and networks. Release No. 33-10459 is effective. Read More.