The FASB has updated the SEC portion of its codification literature to reflect changes the regulator made to simplify disclosures, modernize the reporting and disclosure of information by registered investment companies, and other items. Updated to reflect three SEC releases.
The FASB has updated the SEC portion of its codification literature to reflect changes the regulator made to simplify disclosures, modernize the reporting and disclosure of information by registered investment companies, and other items.
The board on July 26, 2019, released Accounting Standards Update (ASU) No. 2019-07, Codification Updates to SEC Sections—Amendments to SEC paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates.
The codification is the source of authoritative U.S. GAAP recognized by the FASB to be applied to nongovernmental entities. To increase its utility for public companies, the codification includes relevant portions of authoritative content issued by the SEC and selected SEC staff interpretations and administrative guidance for reference.
ASU. 2019-07 updates the codification to reflect the amendments of various SEC disclosure requirements that the agency determined were redundant, duplicative, overlapping, outdated or superseded. The SEC amended its disclosure rules in 2018 with the aim of providing investors with useful disclosure information and to simplify compliance without significantly altering the mix of the information being provided.
The amendments were part of an initiative by the SEC’s Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers.
The regulator has referred certain disclosure requirements that overlap with, but require information incremental to U.S. GAAP to the FASB for potential incorporation into GAAP.
The ASU also reflects the SEC’s rules and forms to modernize the reporting and disclosure of information by registered investment companies. The regulator is adopting new Form N-PORT, which will require certain registered investment companies to report information about their monthly portfolio holdings to the SEC in a structured data format. Investment companies are also required to file Form N-CEN, an annual reporting form that replaces the census information under Form N-SAR. This new form requires the disclosure of additional information on exchange-traded funds and securities lending.