Corp Fin Releases Updated Financial Reporting Manual
Yesterday, Corp Fin announced an update to the Division’s Financial Reporting Manual. The Manual is updated as of October 30, 2020 and sections with updates are marked with the date tag “Last updated: 10/30/2020.” Here’s a summary of some of the changes this update includes:
– Revised to reflect changes to smaller reporting company, accelerated filer and large accelerated filer definitions and amendments from Disclosure Update and Simplifications;
– Clarified the application of Rule 3-13 to Form 8-K and the income test for Rule 3-09 financial statements when there is more than one equity method investee;
– Clarified audit requirements for a special-purpose acquisition company target in Form S-4/F-4;
– Described the substantial deficiency situation impact on certain rule and eligibility standards;
– Included another example of a “To Be Issued” accountant’s report; and
– Removed outdated references and updated for changes to GAAP, guidance issued by the PCAOB, Division of Corporation Finance, and SEC’s Office of Chief Accountant in the last few years.
We’ll be on the lookout for more guidance coming from Corp Fin, given Director Bill Hinman’s upcoming departure. Back in 2016, when Keith Higgins prepared for his departure, Corp Fin issued 35 new CDIs in a single day.
-Lynn Jokela, TheCorporateCounsel.net November 19, 2020
Want to keep reading?
Great. Enter your email address and gain instant access to this article