REPORTING EXEMPTIONS FOR MORE SMALL COMPANIESBy
The Securities & Exchange Commission (SEC) wants to exempt more small companies from some financial reporting requirements. This would be accomplished by raising the public float threshold that already exists for some small companies. The threshold allows the companies to submit scaled executive compensation disclosures and avoid submitting an auditor attestation of internal control over financial reporting.
The proposed rules would enable a company with less than $250 million of public float to provide scaled disclosures as a smaller reporting company, as compared to the $75 million threshold under the current definition. In addition, if a company doesn’t have a public float, it would be permitted to provide scaled disclosures if its annual revenues are less than $100 million, as compared to the current threshold of less than $50 million in annual revenues. A number of advisory committees have recommended increasing the number of companies eligible for reporting exemptions.