The SEC has adopted amendments to the “smaller reporting company” (SRC) definitions to expand the number of companies that qualify for certain existing scaled disclosure accommodations. The amendments enable qualifying registrants to reduce compliance costs. The Commission believes that this amendment will promote capital formation while maintaining appropriate investor protections.
In this Flash Report, we summarize the SEC’s revised definitions and their impact on affected companies. We also explore the possibility of changes to the definitions of “accelerated” and “large accelerated” filers down the road that could impact issuers subject to the attestation requirements of SOX Section 404(b).