On October 4, the Division of Corporation Finance of the Securities and Exchange Commission released an updated Financial Reporting Manual containing revisions to certain sections as of June 30, 2012. The updated Financial Reporting Manual has not yet been revised to reflect the financial reporting and other requirements under the Jumpstart Our Business Startups Act (JOBS Act) for emerging growth companies (EGCs). Therefore, the Financial Reporting Manual should be read in conjunction with the JOBS Act and staff guidance related to financial reporting and other requirements for EGCs.

The other revisions to the Financial Reporting Manual clarify the following:

  • proxy statement financial statement requirements for the disposal of a business;
  • auditor association with amounts from inception in development stage companies;
  • application of Public Company Accounting Oversight Board auditor requirements for financial statements filed pursuant to a reverse merger; and
  • Form 8-K reporting and financial statement requirements in a reverse acquisition with a domestic registrant that is not a shell company.

Current revisions are marked with the date tag “Last updated: 6/30/2012” to identify the changes.

To view the updated Financial Reporting Manual, click here.