Archive | 2009

Smaller Reporting Companies – The Current Regulatory Pipeline

1 Nov
By: Daniel W. Rumsey

Get Ready for XBRL

The requirement to comply with the SEC’s new rules requiring public companies to use interactive data for financial information is soon going to directly impact smaller reporting companies – those public companies with a market capitalization of $75 million or less.  The rules require public companies to file their financial statements, footnotes, and financial statement schedules in the new XBRL format.  Smaller reporting companies won’t be required to comply with the rules until 2011, beginning with fiscal years ending on or after June 15, 2011.   Unlike other initiatives impacting smaller reporting companies, including compliance with certain SOX requirements (see below), smaller reporting companies are not likely to get any breaks or sympathy from Congress in complying with the XBRL filing requirement.  The demand for interactive data is too great, and no group has surfaced to effectively challenge the burden imposed on smaller reporting companies by the new rules.  As a result, smaller reporting companies are once again going to have to bear additional financial and other costs to remain public, although the burdens are certainly going to be less than other initiatives. Read on…

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