In December 2020, Congress enacted the Holding Foreign Companies Accountable (HFCA) Act, and the SEC released interim final amendments that begin to address the components of this Act.
In November 2021, the SEC approved PCAOB Rule 6100, which establishes a process for determining which registered public accounting firms the board is unable to inspect or investigate completely.
In December 2021, the SEC adopted amendments to finalize its rules under the HFCA Act that set forth submission and disclosure requirements for commission-identified issuers identified under the Act, specify the processes by which the SEC will identify and notify Commission-Identified Issuers, and implement trading prohibitions after three consecutive years of identification.
In December 2022, Congress passed the omnibus spending bill and the President signed it into law. This bill included the enactment of provisions to accelerate the timeline for implementation of trading prohibitions from three years to two years. Separately, on December 15, 2022 the PCAOB published its determination that in 2022 the Board was able to inspect and investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. This determination reset the now two-year clock for compliance with the trading prohibitions for identified issuers audited by these firms.
Submission requirements
Disclosure requirements (applying only to foreign issuers)
Disclose the following in the foreign issuer’s annual report covering the non-inspection year identified by the SEC:
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