SEC Disclosure Rule Changes: Near-Term Filing Implications
Skadden's ”Reminders of Recent Updates for Upcoming SEC Filings" recaps the near-term reporting implications of the SEC's recent amendment to the Smaller Reporting Company definition (reported on here and here), new Inline XBRL rules (reported on here), and Disclosure Update & Simplification release (reported on here). Notably, the Disclosure Update & Simplification-triggered changes (blackline here) are not effective until 30 days after publication in the Federal Register, and reportedly aren't expected to impact upcoming Form 10-Q disclosures for calendar year companies.
Access additional resources on our Small Companies, Financial Reporting (see XBRL), and Disclosure Reform topical pages.
Disclosure Update & Simplification: Presentation of Changes in Shareholders’ Equity
Relatedly, the SEC posted this C&DI today, affirming Staff's view that although the amendments are effective for all filings made 30 days after publication in the Federal Register, issuers can defer inclusion of their first presentation of the changes in shareholders' equity to their Form 10-Q for the quarter that begins after the effective date of the amendments:
Question 105.09
Question: On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The amendments will become effective 30 days after publication in the Federal Register. Among the amendments is the requirement to present the changes in shareholders’ equity in the interim financial statements (either in a separate statement or footnote) in quarterly reports on Form 10-Q. Refer to Rules 8-03(a)(5) and 10-01(a)(7) of Regulation S-X. When are filers expected to comply with this new requirement?
Answer: The amendments are effective for all filings made 30 days after publication in the Federal Register. In light of the anticipated timing of effectiveness of the amendments and expected proximity of effectiveness to the filing date for most filers’ quarterly reports, the staff would not object if the filer’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. For example, assuming an effective date of October 25, a December 31 fiscal year-end filer could omit this disclosure from its September 30, 2018 Form 10-Q. Likewise, a June 30 fiscal year-end filer could omit this disclosure from its September 30, 2018 and December 31, 2018 Forms 10-Q; however, the staff would object if it did not provide the disclosures in its March 31, 2019 Form 10-Q. (Sept. 25, 2018)
See Gibson Dunn's post.