Easier Filing Requirements for Smaller Public Companies
By Linda Cavanaugh, CPA - The SEC has changed its categories for filers of SEC reports. Regulation SB has been eliminated and scaled financial and nonfinancial reporting requirements are now part of Regulations S-X and S-K. The terms "small business issuer" and "non-accelerated filer" have been replaced by "smaller reporting company". This new group includes companies with a public float below $75 million or revenues below $50 million if they do not have public float.
Companies that now fall into the "smaller reporting company" category can file either a Form 10KSB or Form 10K for the 2007 year end reporting.
Investment Companies and asset-backed issuers are not eligible for the new status as they were not permitted to file the 10KSB under the previous rules.
The new rules require that a "smaller reporting company" provide an audited two year balance sheet and audited statements of income, cash flows and changes in stockholder's equity for each of the latest two fiscal years. "Smaller reporting companies" may chose for each item to comply with either the scaled requirements or the requirements for other companies.
This is good news for those companies that were close to being under the guidance of Reg. SB and will now qualify for the scaled down disclosures.
Happy Year End
Linda is a CPA living in Southwestern Ohio, working as a research accountant for an investor-owned publicly traded utility company. She specializes in implementing new FASB and SEC requirements and FAS 133 derivative issues. In her role at the utility she has encountered many issues and written many memos, so send in your implementation and derivative issues and Linda will help figure out an answer.