SEC issues updated Financial Reporting Manual

Feb 07, 2023
Audit Financial assets Financial reporting SEC matters

The SEC’s Division of Corporation Finance has published a revised Financial Reporting Manual (the “Manual”). In this version, revisions have been made:

  • For communications with the CF-OCA (the contact number has been updated).
  • To include the amendments to Rules 3-10 and 3-16 of Regulation S-X in SEC Release No. 33- 10763, Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities (issued March 2, 2020).
  • To add guidance related to the implementation of Accounting Standards Update No. 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts.
  • To remove information that is no longer applicable due to the passage of time, such as the adoption of ASC 606.

Within the Manual the changes are marked with the updated date (the changes are as of December 31, 2022). The Manual has not yet been updated for Amendments to Financial Disclosures about Acquired and Disposed Businesses, Qualifications of Accountants, and Management’s Discussion and Analysis, Selected Financial Data and Supplementary Financial Information.

It is important to remember that the Manual is intended to serve as internal guidance for use by the SEC. The Manual does not necessarily contain a discussion of all material considerations necessary to reach an accounting or disclosure conclusion—conclusions about a particular transaction are very fact dependent and require careful analysis of the transaction and of the relevant authoritative accounting literature and SEC requirements. The information in the Manual is non-authoritative.

Subscribe to Financial Reporting Insights

Stay informed with our biweekly resource for recent financial reporting developments, including AICPA, SEC, PCAOB matters and other finance and accounting compliance considerations.