On August 17, 2018, the Securities and Exchange Commission ("SEC") adopted amendments to eliminate or modify certain disclosure requirements that have become duplicative, overlapping or outdated in light of other SEC disclosure requirements, US Generally Accepted Accounting Principles ("GAAP") or "changes in the information environment."
The amendments, which are part of the SEC's efforts to implement a mandate of the Fixing America's Surface Transportation ("FAST") Act, are intended to simplify and update the disclosure of information to investors and reduce compliance burdens for companies, without significantly altering the total mix of information available to investors. The SEC also referred certain disclosure requirements to the Financial Accounting Standards Board ("FASB") for potential incorporation into GAAP.1
Many of the amendments were adopted substantially in the form in which they were proposed in July 2016, except for several amendments that the SEC determined not to adopt.2
The amendments will become effective 30 days after their publication in the Federal Register.
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1 The SEC's announcement can be found here and the final rules are available here. In addition, a "demonstration version" of the new rules, showing the changes being made to existing rules, is available here
2 One overlapping provision that was proposed to be eliminated is being retained and referred to FASB for potential incorporation into GAAP is Regulation S-K Item 201(d), which provides for tabular disclosure regarding existing equity compensation plans.
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