SEC proposes updating disclosure requirements

By Ken Tysiac

The SEC voted Wednesday to propose amendments designed to update and simplify the commission’s disclosure requirements.

The proposed amendments are part of the SEC’s broad-based review of the effectiveness of its disclosure requirements and the presentation and delivery of disclosures that companies make to investors. The commission is required to eliminate provisions of Regulation S-K that are duplicative, overlapping, outdated, or unnecessary.

The proposal’s objective is to eliminate redundant, overlapping, outdated, or superseded provisions in light of changes to SEC disclosure requirements, U.S. GAAP, IFRS, and technology. In addition, the SEC is seeking comment on certain disclosure requirements that overlap with U.S. GAAP to determine whether to retain, modify, eliminate, or refer them to FASB for potential incorporation into U.S. GAAP.

“The proposed amendments address outdated and redundant disclosure requirements while continuing to require companies to provide investors with what they need to make informed decisions,” SEC Chair Mary Jo White said in a news release.

The proposal would primarily apply to public companies, including foreign private issuers. But it also would involve requirements that apply to other entities the SEC regulates, including Regulation A issuers, investment companies, broker-dealers, and nationally recognized statistical rating organizations.

Public comment will be accepted for 60 days following publication of the proposal in the Federal Register.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

VIDEO

Excel walk-through: Sparklines

Want to liven up your spreadsheets with some color and graphical elements? Kelly L. Williams, CPA, Ph.D., shows how to use Excel sparklines, which illustrate data trends and patterns via small charts that fit in a single Excel cell.

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.