SEC Year In Review

Commission and staff activities focused on several key themes and topics in 2017.  These themes and topics were recently emphasized at the annual AICPA Conference on Current SEC and PCAOB Developments held on December 4 - 6, 2017, where representatives of the SEC and PCAOB shared their views on various accounting, reporting, and auditing issues. They include the following:  

• Consistent with Chairman Clayton’s views on SEC policy-making, the SEC and staff are particularly focused on activities intended to facilitate capital formation.   

• The SEC staff is “open for business” and encourages registrants to contact them about questions and potential relief from reporting requirements that call for information that isn’t considered material to investors.

• The SEC’s work continues on its Disclosure Effectiveness Initiative and we should expect further rulemaking and activities related to the initiative in 2018.   

• Keep going/get going. Successfully implementing the significant new accounting standards (revenue, leases, and CECL) is top of mind for the SEC staff and should be for registrants as well. 

• Cybersecurity. Cyber threats and breaches are increasing at a rapid pace and registrants are highly encouraged to focus on their cybersecurity controls, procedures and disclosures. 

• The most significant tax reform since 1986 is upon us.  A new tax code with different corporate tax rates will have substantial consequences on financial reporting and disclosures.

Our SEC Year in Review publication provides additional insight into these issues.  It also summarizes other Commission rulemaking, staff activities and practice issues from the conference that affect financial reporting.