Financial Reporting Manual updated
FINANCIAL REPORTING INSIGHTS |
The SEC’s Division of Corporation Finance Financial Reporting Manual, which is intended only to provide general guidance to Division staff, contains helpful information to auditors and preparers of issuer financial statements. The manual recently was revised to:
- Clarify the guidance in sections 1140.3 and 10220.7 regarding the number of years of financial statements required for a target company in a proxy statement when an emerging growth company is involved
- Clarify the guidance in section 1330.5 regarding filings required after the effectiveness of Form 10
- Clarify the guidance in section 5120.1 regarding the effect of loss of smaller-reporting-company status upon accelerated filer determination
- Reflect the May 2016 updates to Compliance and Disclosure Interpretations on Non-GAAP Financial Measures in section 8110.2
- Clarify emerging growth company guidance in section 10220.5 on financial statements of entities other than the registrant and pro forma information
- Add guidance in Topic 11 regarding implementation of:
- Financial Accounting Standards Board Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), and International Financial Reporting Standard (IFRS) 15, Revenue from Contracts with Customers. For additional information about ASU 2014-09, refer to our summary, Revenue Recognition: Overview of ASC 606.
- ASU 2016-02, Leases (Topic 842), and IFRS 16, Leases. Additional information about ASU 2016-02 is provided in our summary, Leases: Bring on the balance sheet.
- ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosures about Short-Duration Contracts. For additional information about ASU 2015-09, refer to our article, Additional disclosures required for short-duration insurance contracts.