In late December the SEC issued several pronouncements that could be relevant for year-end reporting.<\/p>\n
First, on December 30, 2019 the SEC issued this <\/strong>Statement on Role of Audit Committees in Financial Reporting and Key Reminders Regarding Oversight Responsibilities<\/strong><\/a> from Chair Jay Clayton, Chief Accountant Teotia and CorpFin Director Hinman<\/strong>.\u00a0 The Statement<\/a> provides \u201cobservations and reminders on a number of potential areas of focus for audit committees\u201d.\u00a0 Areas addressed in the statement include:<\/p>\n Tone at the top<\/p>\n Auditor independence<\/p>\n Generally accepted accounting principles<\/p>\n ICFR<\/p>\n Communications to the audit committee from the independent auditor<\/p>\n Non-GAAP measures<\/p>\n Reference rate reform<\/p>\n Critical audit matters<\/p>\n The Statement<\/a> concludes with these words:<\/p>\n \u201cThe strength of our capital markets, and the confidence of investors in our markets, is driven by the continued quality and reliability of financial reporting. Independent audit committees perform a vital role in financial reporting and have a significant oversight responsibility in connection with the preparation and review of the financial information our investors and markets expect.\u201d<\/p>\n Second, on December 19, 2019, CorpFin issued two new Disclosure Guidance Topics.<\/strong><\/p>\n The first, CF Disclosure Guidance: Topic No. 7 – Confidential Treatment Applications Submitted Pursuant to Rules 406 and 24b-2<\/a> addresses \u201chow and what to submit when filing an application objecting to public release of information otherwise required to be filed under the Securities Act and the Securities Exchange Act\u201d.\u00a0 The new Disclosure Guidance topic supersedes Staff Legal Bulletins 1 and 1A.<\/p>\n The second, CF Disclosure Guidance: Topic No. 8 –\u00a0 Intellectual Property and Technology Risks Associated with International Business Operations<\/a> outlines CorpFin\u2019s \u201cviews regarding disclosure obligations that companies should consider with respect to intellectual property and technology risks that may occur when they engage in international operations.\u201d<\/p>\n As always, your thoughts and comments are welcome!<\/p>\n","protected":false},"excerpt":{"rendered":" In late December the SEC issued several pronouncements that could be relevant for year-end reporting. First, on December 30, 2019 the SEC issued this Statement on Role of Audit Committees in Financial Reporting and Key Reminders Regarding Oversight Responsibilities from Chair Jay Clayton, Chief Accountant Teotia and CorpFin Director Hinman.\u00a0 The Statement provides \u201cobservations and … Continue reading A Few Year-End SEC Developments<\/span>