- Organizations should carefully evaluate their cybersecurity disclosure obligations now; SEC guidance focuses on preparing disclosures about cybersecurity risks and incidents.
- The SEC’s Investor Advisory Committee recommended that the commission set strict disclosure requirements for companies with multiclass share structures. Investors and other critics worry that the multiclass structures make it difficult to hold companies accountable for ignoring investor objectives. Between 2005 and 2015, the number of companies with multiclass structures increased by 44 percent, and the growth has added to investor concerns.
- The SEC is considering updating its valuation guidance for investment companies to better reflect the current market. Two interpretive releases the SEC published in 1969 and 1970 were issued years before the accounting guidance for fair value measurements was released and the financial markets became so reliant upon estimates for valuing financial instruments.
- The SEC wants to finalize some proposed rule changes to simplify the public company disclosure requirements for regulatory filings. The SEC proposed the changes to modernize and simplify its disclosure rules for registration statements and annual and quarterly reports.
- SEC Chief Accountant Wesley Bricker urged public companies to make sure that they have clearly disclosed in their 10-K filings how they expect the FASB’s revenue recognition standard to affect their financial statements for upcoming reporting periods. He said the agency’s staff wants to verify that the disclosures will help investors understand the accounting change before they are incorporated in the primary financial statements in 2018 quarterly and annual filings.