This alert highlights recent guidance issued by the Securities and Exchange Commission (SEC) that is designed to assist companies in their financial reporting, while protecting investors.
Please see the following:
- Staff Accounting Bulletin (SAB) No. 118 expresses views of the staff regarding application of US GAAP when preparing an initial accounting of the income tax effects of the Tax Cuts and Jobs Act: https://www.sec.gov/interps/account/staff-accounting-bulletin-118.htm.
- Compliance and Disclosure Interpretation 110.02 expresses views of the staff regarding the applicability of Item 2.06 of Form 8-K with respect to reporting the impact of a change in tax rate or tax laws pursuant to the Tax Cuts and Jobs Act: https://www.sec.gov/divisions/corpfin/guidance/8-kinterp.htm#110.02.
The press release is available at https://www.sec.gov/news/press-release/2017-237, and the related statements by the SEC chair and commissioners are available at https://www.sec.gov/news/public-statement/statement-clayton-piwowar-stein-122217.