CAQ Releases Highlights of July 2020 Joint Meeting With the SEC Staff

The Center for Audit Quality (CAQ) has published highlights of the July 29, 2020, CAQ SEC Regulations Committee joint meeting with the SEC staff.

Topics discussed at the meeting included:

• Date of adopting FASB Accounting Standards Codification Topic 842, Leases, for a non–emerging growth company in an initial registration statement.
• Financial statement requirements and adoption dates for new accounting standards for a target in a Form S-4, merger proxy, or both for a nonreporting target merging with a public operating company, shell company, or SPAC in a reverse merger.
• Extension of FASB adoption date deferrals attributable to COVID-19 to certain “other entities” whose financial statements or financial information are included in a registrant’s filing (i.e., under Regulation S-X, Rule 3-05, “Financial Statements of Businesses Acquired or to Be Acquired”; Rule 3-09, “Separate Financial Statements of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons”; or Rule 4-08(g), “Summarized Financial Information of Subsidiaries Not Consolidated and 50 Percent or Less Owned Persons”).
• Adoption dates of accounting standards for a company upon becoming an “SEC filer.”
• Implementation questions regarding final amendments to Regulation S-X, Rule 3-05.