Financial Accounting


Registration Process Due for Overhaul

SEC regulations usually do not get whimsical names, but, because of its enormous size, the commissions latest proposal has become widely known as the aircraft carrier. Recommending a major overhaul of the securities registration process and covering other issues as well, the documents (SEC release nos. 33-7606 and 33-7607) propose a number of revisions, including

  • Three new registration process formsfor small companies issuing securities and large unseasoned companies, for large seasoned users (those already possessing a filing history with the SEC) and for business combinations and exchange offers.

  • Changes in communications for investorslarge, seasoned users would be able to communicate with investors by using any document, not just a prospectus.

  • Changes in release dates of earnings data.

  • Changes in annual and quarterly reports, including an annual disclosure of significant risk factors.

  • Additional disclosures on form 8-K, including the departure of senior executives.

The proposed changes may be printed from the SEC Web site ( www.sec.gov ), but, because they run to hundreds of pages, you might want to save the text first to your hard drive. The SEC is asking for comments by April 5. The Journal will have a more detailed report when the SEC makes any of the proposed changes final.

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

CHECKLIST

Being responsive to clients

CPAs and their firms have daily pressures and hectic schedules, but being responsive is crucial to client satisfaction. Leaders in the profession offer advice for CPA firms that want to be responsive to clients.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.