{"id":1472,"date":"2019-03-25T15:50:55","date_gmt":"2019-03-25T19:50:55","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=1472"},"modified":"2019-03-25T15:50:55","modified_gmt":"2019-03-25T19:50:55","slug":"a-quick-quarter-end-reminder-and-an-example-statement-of-changes-in-stockholders-equity","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/a-quick-quarter-end-reminder-and-an-example-statement-of-changes-in-stockholders-equity\/","title":{"rendered":"A Quick Quarter-End Reminder and an Example Statement of Changes in Stockholders\u2019 Equity"},"content":{"rendered":"<p>As a quick reminder for first quarter-end, the <a href=\"https:\/\/www.sec.gov\/rules\/final\/2018\/33-10532.pdf\">SEC\u2019s Disclosure Update and Simplification Rule<\/a>\u00a0last fall added a requirement to the Form 10-Q to include a statement of changes in stockholders\u2019 equity.\u00a0 This requirement was added via this addition to Article 10-01(a)\u00a0 of Regulation S-X:<\/p>\n<p style=\"padding-left: 30px;\">(7) Provide the information required by \u00a7210.3-04 for the current and comparative year-to-date periods, with subtotals for each interim period.<\/p>\n<p>Article 3.04 referred to in the paragraph above is the requirement to provide a statement of changes in stockholders\u2019 equity:<\/p>\n<ul>\n<li>210.3-04\u00a0\u00a0\u00a0Changes in stockholders&#8217; equity and noncontrolling interests.<\/li>\n<\/ul>\n<p style=\"padding-left: 60px;\">An analysis of the changes in each caption of stockholders&#8217; equity and noncontrolling interests presented in the balance sheets shall be given in a note or separate statement. This analysis shall be presented in the form of a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is required to be filed with all significant reconciling items described by appropriate captions with contributions from and distributions to owners shown separately. Also, state separately the adjustments to the balance at the beginning of the earliest period presented for items which were retroactively applied to periods prior to that period. With respect to any dividends, state the amount per share and in the aggregate for each class of shares. Provide a separate schedule in the notes to the financial statements that shows the effects of any changes in the registrant&#8217;s ownership interest in a subsidiary on the equity attributable to the registrant.<\/p>\n<p>Given the timing of the effectiveness of the <a href=\"https:\/\/www.sec.gov\/rules\/final\/2018\/33-10532.pdf\">Disclosure Update and Simplification Rule<\/a>, the staff stated in a <a href=\"https:\/\/www.sec.gov\/divisions\/corpfin\/guidance\/exchangeactforms-interps.htm\">C&amp;DI<\/a>that they would not require companies to provide this disclosure for the third quarter last year, but it would be required after that.\u00a0 <strong>For calendar year-end companies, first quarter 2019 is when it is required.<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><a href=\"https:\/\/www.sec.gov\/divisions\/corpfin\/guidance\/exchangeactforms-interps.htm\">Question 105.09<\/a><\/p>\n<p style=\"padding-left: 30px;\">Question:\u00a0On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The amendments will become effective on November 5, 2018. Among the amendments is the requirement to present the changes in shareholders\u2019 equity in the interim financial statements (either in a separate statement or footnote) in quarterly reports on Form 10-Q. Refer to Rules 8-03(a)(5) and 10-01(a)(7) of Regulation S-X. When are filers expected to comply with this new requirement?<\/p>\n<p style=\"padding-left: 30px;\">Answer:\u00a0The amendments are effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendments and proximity of effectiveness to the filing date for most filers\u2019 quarterly reports, the staff would not object if the filer\u2019s first presentation of the changes in shareholders\u2019 equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. For example, 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. (Sept. 25, 2018 and updated October 4, 2018)<\/p>\n<p>With that reminder, if you would like to review an example of the statement, check out this presentation from <a href=\"http:\/\/www.pginvestor.com\/Doc\/Index?did=49506299\">P&amp;G&#8217;s Form 10-Q<\/a>.\u00a0 It provides separate presentations for the quarter and year-to-date information.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/seciblog.pli.edu\/wp-content\/uploads\/Screen-Shot-2019-03-20-at-12.09.35-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-1471\" src=\"https:\/\/seciblog.pli.edu\/wp-content\/uploads\/Screen-Shot-2019-03-20-at-12.09.35-PM-803x1024.png\" alt=\"PandG Stmt of SE\" width=\"604\" height=\"770\" \/><\/a><\/p>\n<p>As always, your thoughts and comments are welcome!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a quick reminder for first quarter-end, the SEC\u2019s Disclosure Update and Simplification Rule\u00a0last fall added a requirement to the Form 10-Q to include a statement of changes in stockholders\u2019 equity.\u00a0 This requirement was added via this addition to Article 10-01(a)\u00a0 of Regulation S-X: (7) Provide the information required by \u00a7210.3-04 for the current and &hellip; <a href=\"https:\/\/seciblog.pli.edu\/index.php\/a-quick-quarter-end-reminder-and-an-example-statement-of-changes-in-stockholders-equity\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">A Quick Quarter-End Reminder and an Example Statement of Changes in Stockholders\u2019 Equity<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[242],"tags":[],"coauthors":[154],"class_list":["post-1472","post","type-post","status-publish","format-standard","hentry","category-reporting"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=1472"}],"version-history":[{"count":0,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1472\/revisions"}],"wp:attachment":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=1472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=1472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=1472"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/coauthors?post=1472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}