SEC Updates its Financial Reporting Manual to Incorporate Guidance on Emerging Growth Companies | Practical Law

SEC Updates its Financial Reporting Manual to Incorporate Guidance on Emerging Growth Companies | Practical Law

The SEC's Division of Corporation Finance updated its Financial Reporting Manual. The revised Manual adds a new Topic 10, "Emerging Growth Companies," reflecting the existing SEC guidance on emerging growth companies under Title I of the JOBS Act.

SEC Updates its Financial Reporting Manual to Incorporate Guidance on Emerging Growth Companies

by Practical Law Corporate & Securities
Published on 30 Oct 2013 • USA (National/Federal)
The SEC's Division of Corporation Finance updated its Financial Reporting Manual. The revised Manual adds a new Topic 10, "Emerging Growth Companies," reflecting the existing SEC guidance on emerging growth companies under Title I of the JOBS Act.
On October 29, 2013, the SEC's Division of Corporation Finance published an updated version of its Financial Reporting Manual.
The revised Manual adds a new Topic 10, "Emerging Growth Companies," reflecting the new category of issuers, emerging growth companies, created under Title I of the JOBS Act. Newly added Topic 10 consists of the following subtopics:
  • Eligibility (Section 10100).
  • Scaled Disclosure Provisions (Section 10200).
  • Foreign Private Issuers (Section 10300).
The revised Manual also includes many other updates to existing sections reflecting the substance of the Division's frequently asked questions on Title I of the JOBS Act. For discussions of these FAQs, see the following Legal Updates:
The revised Manual also includes changes to sections covering:
  • The maximum age of interim financial statements when reporting an acquisition on Form 8-K (Section 2045.15).
  • Financial statement requirements for acquisitions of parts of an entity that result in less than full financial statements (Section 2065).
  • Form 8-K requirements for reporting a disposition (Section 2120.1).
  • The effect of retrospectively applied changes in accounting principle on the significance test for equity method investees (Section 2410.8).
  • Registrations on Form S-8 for new employee benefit plans (Section 15120.4).
A summary of the revisions appears on page one of the revised Manual. The revised sections are marked with the date tag, "Last updated: 6/30/2013".
For more information on emerging growth companies and Title I of the JOBS Act, see Practice Note, JOBS Act: On-ramp to the Capital Markets for Emerging Growth Companies Summary.
For more information on SEC financial reporting requirements generally, see Practice Note, Regulation S-X: What Lawyers Need to Know. For an overview of the sources of law and regulation of accounting, auditing and financial reporting, see Practice Note, Accounting, Auditing and Financial Reporting in the US: Governing Authorities.