Beyond Sarbanes-Oxley year two, focus on the small business issuer
and rating agency, tax and pension reform, an even more prevalent issue existed: the revolving door of leadership at key Washington agencies.
"This would allow a small business issuer
's stock to settle down from the initial volatility of the initial public offering," the sponsors said in a statement.
Under the new disclosure system, a small business issuer
is characterized as a U.S.
Regulation S-B reduces the burden for registration and reporting and contains detailed instructions for small business issuers
. A small business issuer
is defined as a U.S.
* Define the term "small business issuer
" in regulation S-B as a company with annual average market capitalization that does not exceed a specified amount for the preceding fiscal year.
It might be the case that the only investors likely to consider investing with any small business issuers
are those who know the business owners, making the ability to publicly solicit and advertise of little consequence.
Two chapters describe MD&A for small business issuers
and there are chapters on the operating and financial review of Canadian and foreign private companies.
Public companies' (excluding small business issuers
') financial statements must reflect SFAS 123(R) as of the start of the first fiscal year beginning after June 15, 2005.
For example, calendar yearend companies, other than small business issuers
, need not comply with Statement no.
15, 2005 for small business issuers
. Calendar year-end companies that are not small business issuers
, therefore, would have been permitted to follow the pre-existing accounting literature for the first and second quarters of 2005, but required to follow Statement No.
123R, "Share-Based Payment." Companies that report earnings on a calendar-year basis will now have to expense stock options at the beginning of their next fiscal year after June 15, 2005 (December 15, 2005, for small businesses), instead of the beginning of the first interim reporting period after June 15, 2005 (December 15, 2005, for small business issuers
Public entities (other than those filing as small business issuers
) will be required to apply Statement 123(R) as of the first interim or annual reporting period that begins after June 15, 2005.