GAAP disclosure requirements updated and simplified

The SEC has announced it has voted to adopt amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other Commission disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), or changes in the information environment. The amendments are intended to simplify and update the disclosure of information to investors, including long-term Main Street investors, and reduce compliance burdens for companies without significantly altering the total mix of information available to investors. The amendments would eliminate certain:

• Redundant and duplicative requirements, which require substantially similar disclosures as GAAP, International Financial Reporting Standards (IFRS), or other Commission disclosure requirements.
• Overlapping requirements, which are related to, but not the same as GAAP, IFRS, or other Commission disclosure requirements.
• Outdated requirements, which have become obsolete as a result of the passage of time or changes in the regulatory, business, or technological environment.
• Superseded requirements, which are inconsistent with recent legislation, more recently updated Commission disclosure requirements, or more recently updated GAAP.

The amendments will be effective 30 days after publication in the Federal Register.