SEC amendments to filer definitions exempt more issuers from ICFR audits
The SEC has amended the accelerated filer and large accelerated filer definitions to exclude ‘smaller reporting company’ issuers with less than $100 million in annual revenue. The amendments relieve these low-revenue issuers from the internal control over financial reporting (ICFR) auditor attestation requirements.
Public companies, including foreign private issuers
SEC press release
- Effective 30 days after publication in the Federal Register and will apply to an annual report filing due on or after the effective date.
- Exclude from the accelerated filer and large accelerated filer definitions issuers that are eligible to be a smaller reporting company (SRC) and have annual revenue of less than $100 million.
- Increase the transition thresholds from:
- $500 million to $560 million to exit large accelerated filer status
- $50 million to $60 million to become a non-accelerated filer.
- Add the SRC revenue test to the transition thresholds for exiting both accelerated and large accelerated filer status.
- Add a check box to the cover pages of Forms 10-K, 20-F and 40-F to indicate whether ICFR auditor attesetation is included in the filing.
- Retain other requirements such as those related to independent audit committees and management certifications of financial reporting.
SRCs with less than $100 million in revenue will continue to be required to establish, maintain and assess effective internal control over financial reporting. However, these issuers will no longer be required to comply with ICFR auditor attestation requirements.
KPMG's Defining Issues: SEC proposes changes to filer definitions