Heads Up Newsletter

This Heads Up discusses the SEC’s recently issued Final Rule Release No. 33-10825, which modernizes the disclosure requirements in Regulation S-K, Item 101, “Description of Business”; Item 103, “Legal Proceedings”; and Item 105, “Risk Factors.”

This issue discusses the FASB’s recently issued proposed Accounting Standards Update (ASU) Determining the Current Price of an Underlying Share for Equity-Classified Share-Option Awards. The proposed ASU would allow private companies to use a practical expedient to determine the current market price of the underlying share of equity-classified share-option awards issued to grantees. Under the practical expedient, private companies would make this determination by using a valuation that such companies have performed to comply with the “presumption of reasonableness” requirements in Section 409A of the U.S. Internal Revenue Code.

This Heads Up discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity." The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity.

This Heads Up summarizes the disclosure trends we observed in our review of public filings of a sample of companies that adopted the new CECL standard as of the first quarter of 2020, including disclosure trends related to the coronavirus disease 2019 (“COVID-19”) pandemic.

This Heads Up discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2020-05, Revenue From Contracts With Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities. The ASU amends the effective dates of the Board’s standards on revenue and leasing to give immediate relief to certain entities as a result of the widespread adverse economic effects and business disruptions caused by the coronavirus disease 2019 pandemic.

This Heads Up discusses the SEC’s recently issued final rule Amendments to Financial Disclosures About Acquired and Disposed Businesses, which amends the financial statement requirements for acquisitions and dispositions of businesses, including real estate operations, and related pro forma financial information. These changes are intended to improve the information that investors receive regarding acquired or disposed businesses, reduce the complexity and costs of preparing the required disclosures, and facilitate timely access to capital.