SEC Moves to Revise Financial Reporting Forms

The U.S. Securities and Exchange Commission (SEC) has announced that it approved interim final rules regarding the implementation of two provisions for the Fixing America’s Surface Transportation (FAST) Act, adopted by Congress in December. Ultimately, these revisions will update the financial reporting forms for emerging growth companies and smaller reporting companies.

The congressionally mandated rules revise Forms S-1 and F-1 to provide that as long as emerging growth companies’ registration statements include all required financial information at the time of the offering, they will be allowed to omit certain historical period financial information prior to the offering.

Both the S-1 and F-1 forms are used primarily for companies to have an offering of stock, either an initial public offering to enter the public market or a secondary offering to further raise capital.

Additionally, the rules revise Form S-1 to allow smaller reporting companies to use incorporation by reference for future filings the companies make under the federal securities laws after the registration statement becomes effective.
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The interim final rules also include a request for comment on whether the rules should be expanded to include other registrants or forms.

The rules will become effective when published in the Federal Register, and the public comment period will remain open for 30 days following their publication.