Smaller Reporting Companies vs. Emerging Growth Companies- The topic of reporting requirements and distinctions between various categories of reporting companies has been prevalent over the past couple of years as regulators and industry insiders examine changes to the reporting requirements for all companies, andqualifications for the various categories of scaled disclosure requirements. As I’ve
written about these developments, I have noticed inconsistencies in the treatment of smaller reporting companies and emerging growth companies in ways that are likely the result of poor drafting or unintended consequences...
To help you navigate the changes with your pass-through entity clients, I am sharing a resource to create dialogue for your year-end tax planning with them.
We work together to provide the solutions that help your CPA firm succeed including proactive accountability to keep you moving in the right direction.
If you are ready to join the ranks of successful firms throughout the US who have realized significant benefits as a result of Firm Foundation membership and want to explore the next steps, let’s talk: 800.537.7179
A synopsis of the Financial Conduct Authority’s (FCA) latest news and publications issued in April and May 2018.
With GDPR and MiFID II processes now firmly embedded in our daily lives, many of our readers will look back at the months of April and May with a sense of relief.
Periodic Reporting - Ask Securities Lawyer 101Brenda Hamilton
Companies become subject to the SEC’s periodic reporting requirements a number of ways including by filing a registration under the Securities Act of 1933, as amended or pursuant to the Securities Exchange Act of 1934. The SEC periodic reporting rules require that publicly traded companies disclose a wealth of information to the public. Periodic reporting also requires that these reports… Read More
In 2016, the Financial Accounting Standards Board (FASB) released 20 accounting standards updates (ASUs). Among the more significant were changes to leasing, financial instruments and the not-for-profit reporting model.
Despite the completion of many significant projects, the FASB will likely remain active during 2017. Presently, it has 26 active projects, the most significant of which may be considered the proposed changes to hedge accounting originally issued in the third quarter of 2016. During the fourth quarter of 2016 and first couple weeks of 2017, the FASB issued seven accounting standards updates.
Smaller Reporting Companies vs. Emerging Growth Companies- The topic of reporting requirements and distinctions between various categories of reporting companies has been prevalent over the past couple of years as regulators and industry insiders examine changes to the reporting requirements for all companies, andqualifications for the various categories of scaled disclosure requirements. As I’ve
written about these developments, I have noticed inconsistencies in the treatment of smaller reporting companies and emerging growth companies in ways that are likely the result of poor drafting or unintended consequences...
To help you navigate the changes with your pass-through entity clients, I am sharing a resource to create dialogue for your year-end tax planning with them.
We work together to provide the solutions that help your CPA firm succeed including proactive accountability to keep you moving in the right direction.
If you are ready to join the ranks of successful firms throughout the US who have realized significant benefits as a result of Firm Foundation membership and want to explore the next steps, let’s talk: 800.537.7179
A synopsis of the Financial Conduct Authority’s (FCA) latest news and publications issued in April and May 2018.
With GDPR and MiFID II processes now firmly embedded in our daily lives, many of our readers will look back at the months of April and May with a sense of relief.
Periodic Reporting - Ask Securities Lawyer 101Brenda Hamilton
Companies become subject to the SEC’s periodic reporting requirements a number of ways including by filing a registration under the Securities Act of 1933, as amended or pursuant to the Securities Exchange Act of 1934. The SEC periodic reporting rules require that publicly traded companies disclose a wealth of information to the public. Periodic reporting also requires that these reports… Read More
In 2016, the Financial Accounting Standards Board (FASB) released 20 accounting standards updates (ASUs). Among the more significant were changes to leasing, financial instruments and the not-for-profit reporting model.
Despite the completion of many significant projects, the FASB will likely remain active during 2017. Presently, it has 26 active projects, the most significant of which may be considered the proposed changes to hedge accounting originally issued in the third quarter of 2016. During the fourth quarter of 2016 and first couple weeks of 2017, the FASB issued seven accounting standards updates.
Presentation by Corey Arvizu, CPA at HeinfeldMeech 2017 State & Local Governmental Conference on 1/19/17 - includes updates on GASB, Uniform Guidance, Yellow Book, and AICPA Code of Professional Conduct
The process of “going public” with a SEC registration statement is complex and at times precarious. While going public offers many benefits it also comes with risks and quantities of regulations with which issuers must become familiar. Despite the risks even in a down economy, the U.S. markets remain an attractive source of capital for both domestic and foreign issuers. It is important for issuers to have an experienced securities attorney to help navigate through the process and deal with the Securities & Exchange Commission (“SEC”), Financial Regulatory Authority (“FINRA”) & Depository Trust Company (“DTC”).
The partnership taxation regime treats a partnership as simply a conduit (rather than a taxable entity) through which the profit (income) or loss of the partnership are passed onto partners, who will report it together with other profits (income) or losses on their income tax returns. By doing so, so-called double taxation (i.e. one taxation at the entity level and another taxation at the partner level) can be avoided.
National Economic Survey - Volume I - Chapter 9 Privatization And Wealth Crea...DVSResearchFoundatio
OBJECTIVE
National Economic Survey (NES) is the flagship annual document of the Ministry of Finance of the Government of India. It reviews the developments in the Indian economy over the past financial year, summarizes the performance on major development programs, and highlights initiatives of the government and the prospects of the economy in the short to medium term.
A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree).
All entities that have contracts with customers will be affected by the new revenue recognition standard, including not-for-profit organizations.
The Financial Accounting Standards Board (FASB)'s Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) creates a five-step revenue recognition model that replaces a rules-based approach with a principles-based approach. The changes are wide-ranging and will have more of an impact on commercial entities than the nonprofit sector, and not-for-profit organizations will have some exceptions to following the new standard. Contributions, for example, are scoped out of the changes. Nevertheless, other provisions of the new guidance could be of interest and should be considered carefully.
Financial reporting obligations under SEC Rule 701 for private companies that...Azhar Qureshi
As companies remain private longer and continue growing, they often pass the $5 million threshold for the aggregate sales or issuances of securities to employees and other covered persons within a 12-month period, thus triggering the requirement under SEC Rule 701 to provide financial statements and other disclosures to participants in the offering. We are finding that companies may not be aware of the financial reporting obligations under Rule 701 and may not want or be able to provide, even confidentially, the required information to offering participants for competitive reasons. Our Technical Line highlights what private companies need to do to comply with the financial reporting requirements under Rule 701.
Presentation by Corey Arvizu, CPA at HeinfeldMeech 2017 State & Local Governmental Conference on 1/19/17 - includes updates on GASB, Uniform Guidance, Yellow Book, and AICPA Code of Professional Conduct
The process of “going public” with a SEC registration statement is complex and at times precarious. While going public offers many benefits it also comes with risks and quantities of regulations with which issuers must become familiar. Despite the risks even in a down economy, the U.S. markets remain an attractive source of capital for both domestic and foreign issuers. It is important for issuers to have an experienced securities attorney to help navigate through the process and deal with the Securities & Exchange Commission (“SEC”), Financial Regulatory Authority (“FINRA”) & Depository Trust Company (“DTC”).
The partnership taxation regime treats a partnership as simply a conduit (rather than a taxable entity) through which the profit (income) or loss of the partnership are passed onto partners, who will report it together with other profits (income) or losses on their income tax returns. By doing so, so-called double taxation (i.e. one taxation at the entity level and another taxation at the partner level) can be avoided.
National Economic Survey - Volume I - Chapter 9 Privatization And Wealth Crea...DVSResearchFoundatio
OBJECTIVE
National Economic Survey (NES) is the flagship annual document of the Ministry of Finance of the Government of India. It reviews the developments in the Indian economy over the past financial year, summarizes the performance on major development programs, and highlights initiatives of the government and the prospects of the economy in the short to medium term.
A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree).
All entities that have contracts with customers will be affected by the new revenue recognition standard, including not-for-profit organizations.
The Financial Accounting Standards Board (FASB)'s Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) creates a five-step revenue recognition model that replaces a rules-based approach with a principles-based approach. The changes are wide-ranging and will have more of an impact on commercial entities than the nonprofit sector, and not-for-profit organizations will have some exceptions to following the new standard. Contributions, for example, are scoped out of the changes. Nevertheless, other provisions of the new guidance could be of interest and should be considered carefully.
Financial reporting obligations under SEC Rule 701 for private companies that...Azhar Qureshi
As companies remain private longer and continue growing, they often pass the $5 million threshold for the aggregate sales or issuances of securities to employees and other covered persons within a 12-month period, thus triggering the requirement under SEC Rule 701 to provide financial statements and other disclosures to participants in the offering. We are finding that companies may not be aware of the financial reporting obligations under Rule 701 and may not want or be able to provide, even confidentially, the required information to offering participants for competitive reasons. Our Technical Line highlights what private companies need to do to comply with the financial reporting requirements under Rule 701.
Public Company Reporting (Series: Securities Law Made Simple (Not Really) Financial Poise
Once public, a company is subject to a continuously evolving landscape of disclosure and reporting requirements. Recent disclosure developments have addressed everything from executive compensation to cybersecurity. In addition, the prevalence of social media has made it such that a company must now consider not only the nuances of what to disclose but also how to deliver that disclosure. Is your company tweeting its earnings reports; are you using your corporate Facebook page to make Regulation FD disclosures?
In this webinar our expert panel provides you with a high-level overview of key public company reporting and disclosure requirements, including the latest developments brought about by the Dodd-Frank Act, JOBS Act, FAST Act and, most recently, the SEC’s Disclosure Effectiveness Initiative, as well as provide you with tangible examples and practical advice on how to comply with the ever-changing means of delivering that disclosure.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/public-company-reporting-2020/
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashingto.docxouldparis
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2017
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-02217
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
58-0628465
(I.R.S. Employer Identification No.)
One Coca-Cola Plaza, Atlanta, Georgia
(Address of principal executive offices)
30313
(Zip Code)
Registrant's telephone number, including area code: (404) 676-2121
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock, $0.25 Par Value New York Stock Exchange
Floating Rate Notes Due 2019 New York Stock Exchange
Floating Rate Notes Due 2019 New York Stock Exchange
0.000% Notes Due 2021 New York Stock Exchange
1.125% Notes Due 2022 New York Stock Exchange
0.75% Notes Due 2023 New York Stock Exchange
0.500% Notes Due 2024 New York Stock Exchange
1.875% Notes Due 2026 New York Stock Exchange
1.125% Notes Due 2027 New York Stock Exchange
1.625% Notes Due 2035 New York Stock Exchange
1.100% Notes Due 2036 New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
___________________________________________________
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes No
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to
submit and post such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10 K.
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See the def ...
What are the mandatory ROC annual compliances for a company or an LLP? Which forms are filed by a company or an LLP to the ROC annually? What are the consequences of non-filing of ROC forms?
Amendments in Schedule III of Companies Act, w.e.f. 1st April 2022taxguru5
"CA Pragathi Gudur* With the ever-increasing stringency in the regulatory framework and disclosure requirements under various provisions of law, MCA, vide notifi"
TaxGuru is a platform that provides Updates On Amendments in Income Tax, Wealth Tax, Company Law, Service Tax, RBI, Custom Duty, Corporate Law , Goods and Service Tax etc.
To know more visit https://taxguru.in/company-law/amendments-schedule-iii-companies-act-w-e-f-1st-april-2022.html
Regulation A+ expands existing Regulation A. Existing Regulation A provides an existing exemption from registration for smaller issuers of securities. Regulation A+ offerings can be used in combination with direct public offerings and initial public offerings as part of a Going Public Transaction. Regulation A+ simplifies the process of obtaining the seed stockholders required by the Financial Industry Regulatory Authority while allowing the issuer to raise initial capital.
Regulation A+ expands existing Regulation A. Existing Regulation A provides an existing exemption from registration for smaller issuers of securities. Regulation A+ offerings can be used in combination with direct public offerings and initial public offerings as part of a Going Public Transaction.
This SEC in Focus includes remarks from SEC Chairman Jay Clayton on cybersecurity disclosures in SEC filings, recent guidance on pay ratio disclosure requirements, regulatory relief for companies and individuals affected by recent hurricanes, staff clarifications about its nonpublic review program and recent trends in SEC staff comments on non-GAAP measures and other topics.
Our latest newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported in Week in Review. Highlights include remarks from SEC Chief Accountant Wesley Bricker on the adoption of significant new accounting standards and recent trends in SEC staff comments on non-GAAP measures.
EY's latest newsletter summarizes SEC developments in the last quarter. This issue highlights the remarks made by SEC staff members at the recent AICPA National Conference on Current SEC and PCAOB Developments related to SEC reporting implications of new accounting standards, non-GAAP financial measures and management’s discussions and analysis disclosure considerations for income taxes. We also discuss the SEC's progress on rulemaking and other initiatives, as well as significant personnel changes.
EY compendium summarizes comments of representatives of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) at last week’s 2016 AICPA National Conference on Current SEC and PCAOB Developments in Washington, D.C.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
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Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
1. What you need to know
• The SEC changed its definition of a smaller reporting company and estimated that nearly
1,000 more public companies will now qualify to provide scaled disclosures.
• The new thresholds for qualifying are (1) public float of less than $250 million or
(2) annual revenue of less than $100 million in annual revenue and public float of less
than $700 million (including no public float).
• Smaller reporting companies qualify for significant disclosure relief, including fewer
years of annual financial statements and related disclosures as well reduced
nonfinancial disclosures, including those related to governance, executive
compensation, business and risks.
• The rule change is effective 10 September 2018.
Overview
The Securities and Exchange Commission (SEC or Commission) recently changed its definition of
a smaller reporting company (SRC)1
to expand the number of registrants that qualify to provide
scaled disclosures.
The rule change, which is effective 10 September 2018, is expected to reduce compliance costs
for smaller registrants and promote capital formation. The Commission estimates that nearly
1,000 more registrants will now qualify as SRCs.
No. 2018-02
16 August 2018
SEC Reporting
Update
New definition of a smaller reporting
company will provide significant
disclosure relief for many companies
In this issue:
Overview .............................1
Initial qualification test........2
Existing registrants...........2
Initial public offering
(IPO) registrants ...........2
Recurring annual
determinations ................3
Timing and thresholds
for annual
determination test ........3
Entry and exit reporting
in periodic filings...........4
Scaled disclosure
requirements for SRCs ....4
Form and content of
financial statements
and other financial-
related disclosures........4
Financial statements
of other entities............5
Scaled disclosure
requirements for SRCs...6
Appendix A — SRC
requirements for
Form 10-K.......................9
Appendix B — SRC
requirements for
Form 10-Q.....................11
2. EY AccountingLink | ey.com/us/accountinglink
2 | SEC Reporting Update New definition of a smaller reporting company will provide significant disclosure relief for many companies 16 August 2018
While historically SRCs have not been accelerated filers, the SEC didn’t raise the threshold for
accelerated filer status from $75 million of public float. As a result, SRCs with public float
greater than $75 million will be subject to the accelerated filing deadlines and the requirement
to obtain an annual audit of internal control over financial reporting (ICFR). However, the SEC said
its staff is working on recommendations to change the definition of an accelerated filer, which
would require additional SEC rulemaking, and could reduce the number of companies subject to
those requirements.
Investment companies, including business development companies, and issuers of asset-backed
securities don’t qualify for SRC status. Foreign companies are eligible for SRC status only if they
file domestic forms and provide financial statements in accordance with US GAAP.
Initial qualification test
Existing registrants
For purposes of the first fiscal year ending after 10 September 2018, a registrant qualifies as
an SRC if it meets either of these thresholds:
• Its public float is less than $250 million.
• Its annual revenue for its last completed year is less than $100 million and its public float
is less than $700 million (including no public float).
A company’s public float is determined by multiplying the aggregate number of voting and
non-voting common shares held by non-affiliates by the price at which the common shares
were last sold, or the average of the bid and asked prices, in the principal market for the
registrant’s common shares. Thus, the determination of public float is premised on the
existence of a public trading market for the issuer’s common equity securities.
For purposes of determining both SRC status and accelerated filer status, a company calculates
its public float as of the last business day of its most recent second fiscal quarter. For example,
a calendar year-end company would calculate its public float based on its stock price on
29 June 2018, the last business day before 30 June 2018, for purposes of determining its
SRC status and accelerated filer status for its fiscal year ending 31 December 2018.
The SEC staff announced in its Small Entity Compliance Guide for Issuers that a company
newly qualifying as an SRC has the option to transition to the SRC scaled disclosure
accommodations in its:
• Next periodic or current report due on or after 10 September 2018
• Registration or proxy filing or amended filing made on or after 10 September 2018
For example, a calendar year-end company that now qualifies as an SRC can apply scaled
disclosures in its third quarter Form 10-Q and its year-end Form 10-K.
Initial public offering (IPO) registrants
The public float of a company that files an initial registration statement under the Securities Act
for shares of its common equity is determined based upon the estimated public offering price
multiplied by the sum of the aggregate shares held by non-affiliates prior to the filing and the
additional shares that will be sold in the IPO. If the estimated public float is below $250 million,
or the company has less than $100 million in annual revenue and its estimated public float is
less than $700 million, the company would qualify as an SRC.
SRCs with public
float greater than
$75 million will
have to comply
with the accelerated
periodic reporting
deadlines and the
requirement to
obtain an annual
ICFR audit.
3. EY AccountingLink | ey.com/us/accountinglink
3 | SEC Reporting Update New definition of a smaller reporting company will provide significant disclosure relief for many companies 16 August 2018
New issuers have the option to redetermine their status as an SRC for subsequent periodic
reports based upon the actual offering price and the actual number of shares held by non-
affiliates at the conclusion of their IPO. Similarly, for purposes of transitioning to the new
thresholds, a company that completed its IPO after the end of its most recent second fiscal
quarter may elect to use the amount of public float estimated upon initially filing its IPO
registration statement or as of the conclusion of the IPO based on the actual offering price
and number of shares held by non-affiliates.
Companies registering shares that are already outstanding, or listing their existing equity or
debt securities for the first time on a national exchange without an offering, file registration
statements under the Exchange Act. A company filing an initial Exchange Act registration
statement that has public float would determine its public float as measured on any day
(at the company’s choice) within 30 days of the filing date and would qualify as an SRC if
such float is below $250 million. If that company does not have public float (no public common
equity outstanding or no market price for its common equity), it would qualify as an SRC if its
annual revenue for the most recently completed fiscal year was below $100 million.
A company that is conducting an IPO as an EGC should perform the new SRC qualification test
to determine whether it also qualifies for SRC disclosure accommodations that go beyond those
provided for EGCs.
How we see it
Companies that plan to submit a draft registration statement or file an IPO registration
statement before the effective date (10 September 2018) and believe they would qualify
as SRCs after the rule change becomes effective should consider discussing with their SEC
staff reviewer whether it is appropriate to provide scaled SRC disclosures in the submission
or filing.
Recurring annual determinations
Timing and thresholds for annual determination test
The annual determination test for SRC status is performed as of the last business day of the
company’s second fiscal quarter. For a calendar year-end company, the annual determination
test for the year ending 31 December 2019 would be performed on 28 June 2019, the last
business day before 30 June 2019.
The SEC set different entry and exit thresholds for SRC status to minimize moves from one
category to the other due to relatively small changes in public float. The subsequent qualification
thresholds are 80% of the initial qualification thresholds. That is, a registrant that did not initially
qualify as an SRC may subsequently qualify only if it meets either of the following thresholds:
• Public float of less than $200 million
• Annual revenue of less than $80 million for the year completed before the determination
date and public float of less than $560 million at the determination date
A registrant that qualifies as an SRC maintains that status until (1) its public float exceeds
$250 million and its annual revenue exceeds $100 million, (2) its annual revenue exceeds
$100 million and it has no public float or (3) its public float exceeds $700 million, regardless
of annual revenue.
4. EY AccountingLink | ey.com/us/accountinglink
4 | SEC Reporting Update New definition of a smaller reporting company will provide significant disclosure relief for many companies 16 August 2018
Entry and exit reporting in periodic filings
An issuer that qualifies as an SRC for the first time as of the last business day of its second
fiscal quarter may choose to reflect its change in status in its quarterly report on Form 10-Q
for the second quarter and start making scaled disclosures immediately.
An issuer that no longer qualifies as an SRC at its determination date may continue to provide
scaled disclosures through its annual report on Form 10-K for the year that it failed the
measurement test and begin providing the larger company disclosures in its first Form 10-Q
for the following fiscal year.
Scaled disclosure requirements for SRCs
SRCs may choose to comply with either the scaled disclosure requirements for SRCs or the
larger company disclosure requirements on an item-by-item basis in each filing. However, if a
scaled disclosure requirement is more rigorous than the corresponding requirement for larger
companies, an SRC is required to comply with the more rigorous requirement. SRCs should
also apply whatever approach they select consistently from filing to filing to allow investors to
make period-to-period comparisons.
The tables in Appendices A and B show the itemized instructions of Form 10-K and Form 10-Q,
the location of their respective disclosure instructions in Regulations S-X and S-K and a
summary of where scaling is available. Disclosure items that are modified or scaled for SRCs
are discussed below.
Form and content of financial statements and other financial-related disclosures
Annual financial information
SRCs may choose to comply with either the requirements for SRC financial statements in
Article 8 or those for non-SRCs elsewhere in Regulation S-X. Article 8 of Regulation S-X
requires SRCs to file an audited balance sheet as of the end of the two most recent fiscal
years and audited statements of income, comprehensive income, cash flows and changes in
stockholders’ equity and noncontrolling interests for the two most recent fiscal years. Larger
registrants are required to file audited financial statements for three fiscal years.
SRCs always have to comply with the following:
• Article 2 of Regulation S-X, which outlines the requirements for the report and
qualifications of the auditor
• Rule 4-10 regarding the accounting and reporting for oil and gas producing activities
SRCs should also provide all information required by any applicable SEC industry guide.
SRCs that choose to prepare their financial statements in accordance with Article 8 are not
required to follow the presentation requirements of Rules 5-02 and 5-03 of Regulation S-X or
provide the related footnote disclosures. SRCs can also omit the financial schedules required
by Rule 5-04 and any footnote disclosures required by Rule 4-08 (with the exception of the
derivative disclosures required by Rule 4-08(n)(7).2
SRCs also are not required to provide the five-year selected financial data table required by
Item 301 of Regulation S-K, the quarterly financial data table required by Item 302 of Regulation
S-K, and the market risk disclosures required by Item 305 of Regulation S-K.
SRCs can omit
the contractual
obligations table
and related
disclosures.
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How we see it
The option to omit the selected financial data table could provide significant relief for SRCs
that have retrospective accounting changes or discontinued operations because they would
only need to determine the effect for the two years of financial statements presented rather
than the five years required in the table.
SRCs can also choose to discuss in management’s discussion and analysis (MD&A) the results
of operations and effects of price changes and inflation for only the two most recent years for
which they have provided financial statements and can omit the contractual obligations table
required by Item 303(b).
Interim financial information
For the most part, SRCs do not get relief from interim financial reporting. However, they can
condense their interim financial statements and include fewer line items than non-SRCs. For
example, interim balance sheets only need to include separate captions for each component
that represents 10% or more of total assets, with totals for current assets and current
liabilities if the SRC presents a classified balance sheet. However, an SRC needs to present
cash and retained earnings, regardless of their relative significance to total assets.
In their interim income statements, SRCs need only include revenue, each cost and expense
category presented in the annual financial statements that exceeds 20% of revenues, provision
for income taxes and discontinued operations. Interim cash flow statements can be condensed
to show only cash flows from operating, investing and financing activities.
Financial statements of other entities
Financial information for equity method investees
SRCs are not required to provide separate financial statements of significant equity method
investees. However, under Rule 8-03(b)(3), they are required to provide summarized financial
data, including sales, gross profit, net income from continuing operations and net income for
significant equity investees that individually represent 20% or more of their consolidated assets,
equity or income from continuing operations attributable to the registrant in both annual
and interim financial statements. While this requirement is similar to the interim reporting
requirement for larger companies, the threshold for SRCs is higher (20%) than the threshold
for summarized information in annual financial statements for larger companies (10%), and
SRCs aren’t required to provide any balance sheet data.
Financial statements for acquired businesses
SRCs may provide only two years of financial statements of an acquired business under
Rule 8-04 for an acquisition greater than 50% significant, rather than the three years of
financial statements required of larger registrants.
When an SRC acquires a significant non-reporting business, the financial statements of the
non-reporting acquiree may also comply with the scaled reporting requirements outlined in
Article 8 of Regulation S-X. If the SRC is filing the non-reporting target financial statements on
Form S-4 for a merger, such target financial statements may be prepared in accordance with
Article 8 only if the target would qualify as a smaller reporting company if it were a registrant
(i.e., if it had annual revenue of less than $100 million).
For pro forma financial information, the requirements for SRCs and larger companies are
similar, and SRCs can look to the requirements in Article 11 of Regulation S-X for complying
with Rule 8-05 of Regulation S-X.
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Other financial statement requirements
SRCs must comply with the requirements of the following rules but they can provide
information for two years rather than three years:
• Rule 3-10 for separate financial statements of subsidiary issuers and guarantors or
condensed consolidating financial information in specified circumstances
• Rule 3-16 for separate financial statements of affiliates whose securities collateralize the
registrant’s securities
How we see it
SRCs should monitor developments related to the rules on guaranteed or collateralized
securities. In July 2018, the SEC proposed3
rule changes that would significantly decrease
the volume of financial information required for subsidiary issuers and guarantors and
affiliates whose securities collateralize those of the registrant.
Like other registrants, SRCs can also avail themselves of the provisions of Rule 3-13 of
Regulation S-X to request relief from providing required financial statements when the relief
is consistent with the protection of investors.
Scaled disclosure requirements for SRCs
Upon qualifying as an SRC, a registrant can omit from its Form 10-K its legacy disclosures
about risk factors, market risks, selected financial data, selected quarterly financial data and
financial schedules if the information is not material to its investors. SRCs must continue to
provide risk factor disclosures in their Securities Act registration statements.
Item 101. Description of business
While SRCs and non-SRCs have to discuss one year of business developments in Form 10-K,
an SRC can discuss developments over only the last three years in a registration or proxy
statement rather than the five years non-SRCs need to discuss.
A registrant that newly qualifies for SRC status could significantly abbreviate its business
discussion by removing the financial information about its separate segments, geographic
areas and firm backlog orders.
SRCs that operate their business in two or more reportable segments or across multiple
geographic regions must continue to provide the disclosures required by Accounting Standards
Codification 280, Segment Reporting, in the notes to their audited financial statements.
Further, an SRC’s MD&A discussion of operating results should also be organized by
reportable segment or other relevant business division if necessary to help users understand
the business and its overall financial condition and operating results.
Item 402. Executive compensation
Items 402(l) through 402(r) of Regulation S-K set forth the executive compensation
disclosure requirements applicable to SRCs.
An SRC can provide only the following compensation-related tables along with related
narrative disclosures, with slight modifications to some of the reporting thresholds:
• The summary compensation table
• The table of outstanding equity awards at fiscal year end
• The director compensation table
SRCs can omit
the pay ratio and
other executive
compensation
disclosures.
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SRCs can omit the following narrative discussions and tables:
• Compensation discussion and analysis
• Table of grants of plan-based awards
• Table of option exercises and stock vested
• Pension benefits table
• Nonqualified deferred compensation table
• Disclosure of compensation policies and practices related to risk management
• Pay ratio disclosure
SRCs can provide compensation information for three named executive officers (NEOs) rather
than five NEOs, meaning they need to disclose compensation only for their Principal Executive
Officer and the next two most highly compensated officers. If they haven’t already provided
more information in an earlier filing, SRCs can provide compensation data for only two years
(or only the last fiscal year if they did not have periodic reporting obligations in the prior year).
SRCs should be aware that, while they can omit the pension benefits table and associated notes,
they are required under Item 402(q) of Regulation S-K to provide a narrative description of
the material terms of each plan that provides for the payment of retirement benefits or benefits
that will be paid primarily after retirement.
SRCs are also expected to disclose the material terms of each contract, agreement or plan
that provides for payments to one or more NEOs upon a change in control of the registrant
regardless of whether the payments are at, following or in connection with his or her resignation,
retirement or a change in the NEO’s responsibilities following a change in control.
How we see it
We expect issuers that qualify for SRC status for the first time to significantly reduce their
executive compensation disclosures, as emerging growth companies have done.
Item 404. Transactions with related persons, promoters and certain controlled persons
The only more granular disclosures SRCs are required to make under Regulation S-K are those
described in Item 404. An SRC cannot opt to provide the less rigorous disclosure for a non-
SRC. These expanded disclosures are required for the last two years and include:
• Item 404(a): Disclose transactions with related persons that exceed the lesser of $120,000
or 1% of average total assets for the last two completed fiscal years, meaning SRCs with
total assets of less than $12 million would have a lower disclosure threshold than a non-
SRC’s threshold of $120,000
• Item 404(d): Provide specific information about underwriting discounts and commissions
when a related person as specified in Item 404(a) is the principal underwriter or is the
controlling person or member of a firm that is the principal underwriter
• Item 404(d): Provide a list of parent entities, the percentages of voting securities they
own and describe the basis of their control
However, SRCs are not required to describe their policies and procedures for review, approval
or ratification of related party transactions.
SRCs still must
provide more
granular disclosures
about transactions
with related
parties than
other registrants.
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Appendix A — SRC requirements for Form 10-K
Form Item Form 10-K instructions Disclosure requirement Scaling for SRCs
Part I
Item 1 Business S-K Item 101 Scaled
Item 1A Risk factors S-K Item 503(c) Not required
Item 1B Unresolved staff comments Material unresolved SEC staff comment
letters received more than 180 days before
the fiscal year end
Required if SRC is accelerated filer
Item 2 Properties S-K Item 102 Same as non-SRC
Item 3 Legal proceedings S-K Item 103 Same as non-SRC
Item 4 Mine safety disclosures S-K Item 104 Same as non-SRC
Part II
Item 5 Market for registrant’s common
equity and related stockholder
matters
S-K Item 201
S-K Item 701
S-K Item 703
Same as non-SRC except stock
performance graph in Item 201(e)
Same as non-SRC
Same as non-SRC
Item 6 Selected financial data S-K Item 301 Not required
Item 7 Management’s discussion and
analysis
S-K Item 303 Scaled
Item 7A Quantitative and qualitative
disclosures about market risk
S-K Item 305 Not required
Item 8 Financial statements
Supplementary financial information
S-X Rules 3-01 through 3-04
S-X Articles 4 and 5
S-X Article 7 if the registrant is an insurance
company or Article 9 if it’s a bank holding
company
S-K Item 302
Scaled in Article 8 of Regulation S-X
Not required
Item 9 Changes in and disagreements with
accountants on accounting and
financial disclosure
S-K Item 304(b) Same as non-SRC
Item 9A Controls and procedures S-K Items 307 and 308 Same as non-SRC
An SRC is required to include an audit
report on its ICFR only if it is also an
accelerated filer
Item 9B Other information Any information required to be disclosed on
Form 8-K during the quarter but not reported
Same as non-SRC
Part III
Item 10 Directors, executive officers and
corporate governance
S-K Items 401, 405, 406 and 407(c)(3),
(d)(4) and (d)(5)
Scaled corporate governance
disclosures under Item 407
Item 11 Executive compensation S-K Items 402 and 407(e)(4) and (e)(5) Scaled executive compensation
disclosures under Item 402
Item 12 Security ownership S-K Items 201(d) and 403 Same as non-SRC
Item 13 Certain relationships and related
transactions, and director
independence
S-K Items 407(a) and 404(c)
S-K Items 404(a) and (d)
S-K Item 404(b)
Same as non-SRC
Expanded for SRCs
Not required
Item 14 Principal accountant fees and services Item 9(e) of Schedule 14A Same as non-SRC
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Form Item Form 10-K instructions Disclosure requirement Scaling for SRCs
Part IV
Item 15 Exhibits
Financial statement schedules
S-K Item 601 Exhibits
S-X Article 12 Financial Statement Schedules
Same as non-SRCs except statement
regarding computation of ratios
Not required
Item 16 Form 10-K summary Optional Optional
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Appendix B — SRC requirements for Form 10-Q
Form Item Form 10-Q instructions Disclosure requirement Scaling for SRCs
Part I
Item 1 Financial statements S-X Rule 10-01 Scaled in Article 8-03 of Regulation S-X
Item 2 Management’s discussion and
analysis
S-K Item 303(b) Same as non-SRC
Item 3 Quantitative and qualitative
disclosures about market risk
S-K Item 305 Not required
Item 4 Controls and procedures S-K Item 307
S-K Item 308(c)
Same as non-SRC
Part II
Item 1 Legal proceedings S-K Item 103 Same as non-SRC
Item 1A Risk factors Material changes in risk factors since those
disclosed in last 10-K
Not required
Item 2 Unrestricted sales of equity
securities and use of proceeds
S-K Item 701 if not previously included in a
Form 8-K
S-K Item 703
Same as non-SRC
Same as non-SRC
Item 3 Defaults upon senior securities Disclose if not previously included in a
Form 8-K
Same as non-SRC
Item 4 Mine safety disclosures S-K Item 104 Same as non-SRC
Item 5 Other information Any information required to be disclosed on
Form 8-K during the quarter but not reported
S-K Item 407(c)(3) changes to procedures to
nominate members of the board of directors
Same as non-SRC
Same as non-SRC
Item 6 Exhibits S-K Item 601 Same as non-SRC