Heads Up on SEC staff views

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04 Aug 2007

On 10 July 2007, the SEC Regulations Committee of the American Institute of CPAs held its second meeting of the year with the Securities and Exchange Commission staff.

The Regulations Committee is composed of representatives from various public accounting firms, industry, and academia. The Committee meets periodically with the SEC staff to discuss emerging technical accounting and reporting issues relating to SEC rules and regulations, as well as ongoing SEC staff projects and final rule releases. Deloitte & Touche LLP (United States) has published a Heads Up Newsletter (PDF 82k) summarising the meeting. Among the issues discussed were:
  • Executive compensation disclosures*
  • Disclosure of risk factors related to the financial reporting process – for example, disclosure of potential risks that the registrant might be required to restate or make other changes to financial statements*
  • Reporting on internal controls in a reverse merger*
  • Providing summarised financial information for equity investee(s) for periods in which the investee is not significant
  • Providing financial statements of a to-be-acquired business in registration statements covering secondary offerings
  • Significance calculations for determining financial statement requirements for equity investees
  • When stock-based executive compensation that is capitalised or deferred should be reported in the summary compensation table
*These are described as 'time sensitive'.


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