Recent SEC Disclosure Simplification Rules Adopted

Howard B. Levy, CPA

This article is an update to the author's auditing column covering the same material in the proposal stage, published in the August 2018 issue of The CPA Journal, “Overcoming Disclosure Overload and Achieving Greater Disclosure Effectiveness: A Status Report” (http://bit.ly/2EvwL5A). A recent SEC release (Release 33-10532, http://bit.ly/2EyGVCz) adds a few new disclosure requirements, but principally affords issuers with relief from the burdens of disclosure overload and opportunities to make their filings more readable. This article is intended only to alert readers to the principal provisions of the release, not as a complete analysis of the amendments. The final release is largely consistent with the October 2017 SEC proposal (discussed in and supported by the article cited above), but with some minor omissions. The principal new requirement for Form 10-Q filings is for additional disclosure with respect to changes in shareholders' equity accounts.