On June 28, 2018, the U.S. Securities and Exchange Commission (SEC) voted to adopt amendments to the "smaller reporting company" (SRC) definition to expand the number of companies that qualify for certain existing scaled disclosure accommodations. The new SRC definition enables a company with less than $250 million of public float to provide scaled disclosures, as compared to the $75 million threshold under the prior definition. The final rules also expand the SRC definition to include companies with less than $100 million in annual revenues if they also have either no public float or a public float that is less than $700 million. Importantly, the amendments do not change the public float threshold in the "accelerated filer" definition. Accelerated filers, among other things, are required to provide the auditor's attestation of management's assessment of internal control over financial reporting.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.