Proposal of Legislation to Further Reduce Impediments to Capital Formation

The US Congress’ Committee on Financial Services scheduled a hearing to discuss new legislation to reduce impediments to capital formation.

One of the issues at hand is a proposal to exempt small filers from XBRL filing requirements. Rep. Robert Hurt has begun a discussion to provide an optional exemption for EGCs and non-accelerated filers from SEC© rules requiring registrants to file their financial statements in XBRL. The argument for exemption is based on the premise that the high cost of meeting the compliance standard far outweighs the benefits to increased insight to potential investors examining small companies. For the full document, please click here for access to the memo.

Contact us for any questions on the proposed XBRL exemptions or click here for information on our Securex XBRL solutions.

How do you feel about the proposed exemptions for smaller reporting companies?