The Securities and Exchange Commission (SEC) announced rule amendments to modernize, simplify, and enhance certain financial disclosure requirements in Regulation S-K. The amendments include eliminating Item 301 of Regulation S-K, Selected Financial Data and Item 302 of Regulation S-K, Supplementary Financial Information to eliminate duplication. The rule also includes an amendment to Item 303 of Regulation S-K, Management’s Discussion & Analysis of Financial Condition and Results of Operations (MD&A) to modernize and enhance MD&A disclosures.
The proposal does not recommend that structured data be required for the reporting of MD&A, citing the cost to filers, and the fact that the MD&A is prepared on a principles-based framework, which encourages disclosures tailored to each company’s specific facts and circumstances, limiting comparability of MD&A content. The Commission does however, request comment on whether MD&A information should be reported using Inline XBRL.
Read the rule.