{"id":1520,"date":"2019-05-06T12:41:42","date_gmt":"2019-05-06T16:41:42","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=1520"},"modified":"2019-05-06T12:41:42","modified_gmt":"2019-05-06T16:41:42","slug":"more-modernization-and-simplification-on-the-horizon","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/more-modernization-and-simplification-on-the-horizon\/","title":{"rendered":"More Modernization and Simplification on the Horizon?"},"content":{"rendered":"<p><span data-contrast=\"auto\">In the last week there have been two very interesting developments in the SEC\u2019s disclosure effectiveness process.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">O<\/span><\/b><b><span data-contrast=\"auto\">n <\/span><\/b><b><span data-contrast=\"auto\">May 3, 2019<\/span><\/b><b><span data-contrast=\"auto\">,<\/span><\/b><b><span data-contrast=\"auto\"> the SEC formally proposed a rule to \u201ci<\/span><\/b><b><span data-contrast=\"none\">mprove the information that investors receive regarding the acquisition and disposition of businesses.\u201d<\/span><\/b><span data-contrast=\"none\">\u00a0 The SEC indicated <\/span><span data-contrast=\"none\">that <\/span><span data-contrast=\"none\">\u201c<\/span><span data-contrast=\"none\">[t]<\/span><span data-contrast=\"none\">he <\/span><span data-contrast=\"none\">proposed amendments are also intended to facilitate more timely access to capital and to reduce complexity and compliance costs of these financial disclosures.<\/span><span data-contrast=\"auto\">\u201d<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The proposed rules would change Regulation S-X <\/span><span data-contrast=\"none\">Rules 3-05<\/span><span data-contrast=\"none\"> and<\/span> <span data-contrast=\"none\">3-14, Article 11<\/span><span data-contrast=\"none\">,<\/span><span data-contrast=\"none\"> an<\/span><span data-contrast=\"none\">d<\/span><span data-contrast=\"none\"> other related rules and forms.\u00a0 Among the many changes in the proposed rule are:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Updates to the investment test and the income test in the significant subsidiary test<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Expanding the use of pro forma financial information in measuring significance<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Conforming the significance threshold and tests for a disposed business<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Requiring the financial statements of the acquired business to cover up to the two most recent fiscal years rather than up to the three most recent fiscal years<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Permitting<\/span><span data-contrast=\"none\"> disclosure of financial statements that omit certain expenses for certain acquisitions of a component of an entity.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">There are a raft of details in the proposed rule and you can find an extensive <\/span><a href=\"https:\/\/www.sec.gov\/news\/press-release\/2019-65\"><span data-contrast=\"none\">Fact Sheet with a link to the proposed rule here<\/span><\/a><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><b><span data-contrast=\"none\">O<\/span><\/b><b><span data-contrast=\"none\">n <\/span><\/b><b><span data-contrast=\"none\">May 9, 2019<\/span><\/b><b><span data-contrast=\"none\">,<\/span><\/b> <b><span data-contrast=\"none\">in an open meeting, <\/span><\/b><b><span data-contrast=\"none\">the SEC will consider proposing changes to the definitions of accelerated and large accelerated filers.<\/span><\/b><span data-contrast=\"none\">\u00a0 According to the <\/span><a href=\"https:\/\/www.sec.gov\/news\/openmeetings\/2019\/agenda050919.htm\"><span data-contrast=\"none\">meeting agenda<\/span><\/a><span data-contrast=\"none\">:<\/span><span data-ccp-props=\"{&quot;335559739&quot;:75}\">\u00a0<\/span><\/p>\n<p style=\"padding-left: 30px;\"><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559739&quot;:75}\">\u00a0<\/span><span data-contrast=\"none\">The Commission will consider whether to propose new rule amendments to the accelerated filer and large accelerated filer definitions to promote capital formation for smaller reporting issuers by more appropriately tailoring the types of issuers that are included in the categories of accelerated and large accelerated filers and revising the transition thresholds for these filers.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559739&quot;:75}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559739&quot;:75}\">\u00a0<\/span><span data-contrast=\"auto\">As always, your thoughts and comments are welcome!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the last week there have been two very interesting developments in the SEC\u2019s disclosure effectiveness process.\u00a0 On May 3, 2019, the SEC formally proposed a rule to \u201cimprove the information that investors receive regarding the acquisition and disposition of businesses.\u201d\u00a0 The SEC indicated that \u201c[t]he proposed amendments are also intended to facilitate more timely &hellip; <a href=\"https:\/\/seciblog.pli.edu\/index.php\/more-modernization-and-simplification-on-the-horizon\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">More Modernization and Simplification on the Horizon?<\/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},"_wpas_customize_per_network":false},"categories":[242],"tags":[],"coauthors":[154],"class_list":["post-1520","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\/1520","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=1520"}],"version-history":[{"count":0,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1520\/revisions"}],"wp:attachment":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=1520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=1520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=1520"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/coauthors?post=1520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}