United States

SEC disclosure update and simplification

FINANCIAL REPORTING INSIGHTS  | 

As part of its Disclosure Effectiveness Initiative, the SEC recently issued Release No. 33-10532, Disclosure Update and Simplification. This Release amends certain disclosure requirements that have become redundant, outdated, overlapping or superseded, in light of other SEC disclosure requirements, U.S. generally accepted accounting principles (GAAP), International Financial Reporting Standards or changes in the information environment. The amendments apply primarily to public reporting companies, but some amendments also apply to other entities the SEC regulates, including Regulation A issuers, investment advisers, investment companies and broker-dealers. The Release also refers certain SEC disclosure requirements that overlap with, but require information incremental to, U.S. GAAP to the Financial Accounting Standards Board for potential incorporation into U.S. GAAP. The Release is effective 30 days after publication in the Federal Register.