April 13, 2017

Now Effective: Cover Page Changes for Many Forms

Yesterday, the self-effectuating changes – under the JOBS Act – to many of the SEC’s ’33 Act & ’34 Act forms became effective – since the rule changes were published in the Code of Federal Regulations. I originally blogged about this a few weeks ago, several days before the SEC put out their press release about it – not sure why the SEC waited to do that, but it seems to have caused some confusion among loyal readers (that along with my unartful title of that blog).

Most of these changes impact cover pages, which will help the SEC identify whether a filer is an “emerging growth company” or not. In other words, your cover pages will now change for these forms regardless if your company is an EGC or not.

We’re posting memos about these rules changes in our “Emerging Growth Companies” Practice Area. And see Keith Bishop’s blog about a flaw to the new cover pages…

PCAOB: Probing “Confidential Inspection Info” Leak

Here’s the intro from this WSJ article by Dave Michaels (also see this NY Times editorial):

Six employees at KPMG LLP have resigned after the U.S. audit regulator began investigating the leak of a confidential plan to inspect work performed by the global accounting firm, the company said Tuesday. The departing KPMG employees include four partners and Scott Marcello, a partner and the head of the firm’s audit practice, according to KPMG. The firm confirmed the matter after being contacted by The Wall Street Journal. Mr. Marcello couldn’t immediately be reached for comment.

The Public Company Accounting Oversight Board, created by Congress after the accounting scandals that took down Enron Corp. and WorldCom Inc. to police audits of listed companies, has hired an outside law firm to probe the breach, according to people familiar with the matter. The accounting board discovered the leak more than a month ago, according to the people, and the incident has sparked renewed concern about the management of the regulator, which has been criticized as moving slowly to advance new audit standards.

Revenue Recognition: Are Most Companies Behind?

Here’s an excerpt in this blog from “The SEC Institute”:

The second recent development is the release by Deloitte in a “Heads Up” newsletter in April 2017 of their most recent updated survey “Adopting the New Revenue Standard — Where Do Companies Stand?” In the survey, Deloitte found that many companies that had originally contemplated using a full retrospective have moved more towards the modified retrospective method. And, along with the worries of the SEC Chief Accountant above, they also found: “Slightly more than half of respondents had started to implement the new standard, but most were in the very early phases of adoption.”

Broc Romanek