{"id":2115,"date":"2022-01-18T15:24:52","date_gmt":"2022-01-18T20:24:52","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=2115"},"modified":"2022-01-18T15:27:15","modified_gmt":"2022-01-18T20:27:15","slug":"sec-finalizes-holding-foreign-companies-accountable-act","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/sec-finalizes-holding-foreign-companies-accountable-act\/","title":{"rendered":"SEC Finalizes Holding Foreign Companies Accountable Act Reporting"},"content":{"rendered":"

On December 2, 2021, the SEC adopted rules finalizing<\/a> implementation of the Holding Foreign Companies Accountable Act (HFCAA).\u00a0 The HFCAA requires a company to make certain submissions and disclosures if the auditor\u2019s report on the financial statements in its annual report is issued by an auditor located in a foreign jurisdiction where the PCAOB is unable to inspect the auditor\u2019s work.<\/p>\n

The Final Rule<\/a> specifies the SEC\u2019s process to identify affected companies, which are referred to as \u201cCommission-Identified Issuers.\u201d\u00a0 This process is based on an identification of auditors whose work is not subject to inspection in a related PCAOB Rule.\u00a0 Identified companies are required to \u201cprovide information documenting that they are not owned or controlled by a governmental entity in its public accounting firm\u2019s foreign jurisdiction on or before the due date of their annual report.\u201d<\/p>\n

According to the related Fact Sheet, \u201cCommission-Identified Issuers,\u201d that also meet the definition of \u201cforeign issuer\u201d in Rule 3b-4, will be required to make disclosures for itself and other related entities, that include:<\/p>\n