SEC Amends Smaller Reporting Company Definition

On June 28, 2018, the SEC voted unanimously to adopt amendments to the "smaller reporting company" (SRC) definition to expand the number of smaller companies eligible to comply with certain scaled disclosure accommodations.¹ The final rule was adopted generally in the form in which it was proposed two years ago, except for several changes that are described below.

Although the final rule amendments did not change the applicable threshold in the "accelerated filer" definition (which carries with it the requirement to provide an outside auditor's attestation of management's assessment of internal control over financial reporting), Chairman Clayton has directed SEC staff to formulate recommendations to the SEC for possible, additional changes to the "accelerated filer" definition.