United States

Effective date: Interim reporting of changes in stockholders' equity


In August the SEC issued Release No. 33-10532, Disclosure Update and Simplification. This Release primarily eliminates certain disclosure requirements that have become redundant, outdated, overlapping or superseded, in light of other SEC disclosure requirements, U.S. generally accepted accounting principles, International Financial Reporting Standards or changes in the information environment. However, the Release also includes a new interim reporting requirement for changes in stockholders’ equity in accordance with Regulation S-X Rule 3-04 for the current and comparative year-to-date periods, with subtotals for each interim period. The Release is effective for all filings made 30 days after publication in the Federal Register.

In a September 25, 2018 Compliance and Disclosure Interpretation, the SEC staff announced that it would not object if the filer’s first presentation of the changes in shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. For example, assuming an effective date of October 25, a December 31 fiscal year-end filer could omit this disclosure from its September 30, 2018 Form 10-Q. Likewise, a June 30 fiscal year-end filer could omit this disclosure from its September 30, 2018 and December 31, 2018 Forms 10-Q; however, the staff would object if it did not provide the disclosures in its March 31, 2019 Form 10-Q.