SEC Proposal Seeks to Streamline Disclosure Requirements by Eliminating Redundant and Duplicative Disclosure

On Aug. 4, the Securities and Exchange Commission (SEC) issued a proposal that would amend certain disclosure requirements that it believes have become redundant, duplicative, outdated or superseded by other SEC disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS) or changes in the business environment.

The SEC is also seeking constituent input on SEC disclosure requirements that overlap with, or are incremental to, existing GAAP to determine whether the SEC should retain, modify or eliminate the disclosure requirements. Alternatively, the SEC is questioning whether it should simply refer the disclosure requirements to the Financial Accounting Standards Board (FASB) for potential incorporation into GAAP.

The Proposal may be of interest to REITs, as it specifically cites REIT examples when current SEC guidance would be amended and duplicative disclosure would be eliminated.

If you are interested in participating in a task force that will evaluate the proposal and consider whether NAREIT should develop a comment letter, please contact Christopher Drula at cdrula@nareit.com by close of business on Aug. 22. Comments are due to the SEC by Oct. 3.

(Contact: Christopher Drula at cdrula@nareit.com)

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