Federal Register/Vol. 86, No. 6/Monday, January 11, 2021/Rules
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2080 Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Rules and Regulations SECURITIES AND EXCHANGE SUMMARY: We are adopting amendments DATES: COMMISSION to modernize, simplify, and enhance Effective date: The final rules are certain financial disclosure effective February 10, 2021. 17 CFR Parts 210, 229, 230, 239, 240, requirements in Regulation S–K. Compliance date: See Section II.F for and 249 Specifically, we are eliminating the further information on transitioning to requirement for Selected Financial Data, the final rules. [Release No. 33–10890; 34–90459; IC– 34100; File No. S7–01–20] streamlining the requirement to disclose FOR FURTHER INFORMATION CONTACT: Supplementary Financial Information, Angie Kim, Special Counsel, Office of RIN 3235–AM48 and amending Management’s Rulemaking, at (202) 551–3430, or Ryan Discussion & Analysis of Financial Milne, Associate Chief Accountant, Management’s Discussion and Condition and Results of Operations Office of the Chief Accountant, at (202) Analysis, Selected Financial Data, and (‘‘MD&A’’). These amendments are 551–3400 in the Division of Corporation Supplementary Financial Information intended to eliminate duplicative Finance, U.S. Securities and Exchange Commission, 100 F Street NE, AGENCY: Securities and Exchange disclosures and modernize and enhance Washington, DC 20549. Commission. MD&A disclosures for the benefit of investors, while simplifying compliance SUPPLEMENTARY INFORMATION: We are ACTION: Final rule. efforts for registrants. adopting amendments to: Commission reference CFR citation (17 CFR) Regulation S–X ............................................................................................................................... §§ 210.1–01 through 210.13–02. Item 1–02(bb) ........................................................................................................................... § 210.1–02(bb). Regulation S–K ............................................................................................................................... §§ 229.10 through 229.1406. Item 10 ..................................................................................................................................... § 229.10. Item 301 ................................................................................................................................... § 229.301. Item 302 ................................................................................................................................... § 229.302. Item 303 ................................................................................................................................... § 229.303. Item 914 ................................................................................................................................... § 229.914. Regulation AB ................................................................................................................................. §§ 229.1100 through 229.1125. Item 1112 ................................................................................................................................. § 229.1112. Item 1114 ................................................................................................................................. § 229.1114. Item 1115 ................................................................................................................................. § 229.1115. Securities Act of 1933 1 (‘‘Securities Act’’) Rule 419 ................................................................................................................................... § 230.419. Form S–1 ................................................................................................................................. § 239.11. Form S–20 ............................................................................................................................... § 239.20. Form S–4 ................................................................................................................................. § 239.25. Form F–1 ................................................................................................................................. § 239.31. Form F–4 ................................................................................................................................. § 239.34. Securities Exchange Act of 1934 2 (‘‘Exchange Act’’) Rule 14a–3 ............................................................................................................................... § 240.14a–3. Schedule 14A ........................................................................................................................... § 240.14a-101. Form 20–F ............................................................................................................................... § 249.218. Form 40–F ............................................................................................................................... § 249.220f. Form 8–K ................................................................................................................................. § 249.308. Form 10–K ............................................................................................................................... § 249.310. Securities Act and Investment Company Act of 1940 3 (‘‘Investment Company Act’’) Form N–2 ................................................................................................................................. §§ 239.14 and 274.11a–1. 1 15 U.S.C. 77a et seq. 2 15 U.S.C. 78a et seq. 3 15 U.S.C. 80a–1 et seq. Table of Contents 2. Capital Resources—Material Cash 8. Critical Accounting Estimates (New Item Requirements (New Item 303(b)(1) and 303(b)(3)) I. Introduction Amended Item 303(b)(1)(ii)) 9. Interim Period Discussion (Amended A. Background 3. Results of Operations—Known Trends or Item 303(c)) B. Overview of the Final Amendments Uncertainties (Amended Item 10. Safe Harbor for Forward-Looking II. Description of the Final Amendments 303(b)(2)(ii)) Information (Current Item 303(c)) A. Selected Financial Data (Item 301) 4. Results of Operations—Net Sales and 11. Smaller Reporting Companies (Current 1. Proposed Amendments Revenues (Amended Item 303(b)(2)(iii)) Item 303(d)) 2. Comments 600 D. Application to Foreign Private Issuers 3. Final Amendments 5. Results of Operations—Inflation and 1. Form 20–F B. Supplementary Financial Information Price Changes (Current Item 2. Form 40–F (Item 302) 303(a)(3)(iv), and Current Instructions 8 3. Item 303 of Regulation S–K 1. Proposed Amendments and 9 to Item 303(a)) (Hyperinflation Requirement in Item 303 2. Comments 6. Off-Balance Sheet Arrangements (New for FPIs) 3. Final Amendments Instruction 8 to Item 303(b)) E. Additional Conforming Amendments C. Management’s Discussion and Analysis 7. Contractual Obligations Table (Current 1. Roll-up Transactions—Item 914 of of Financial Condition and Results of Item 303(a)(5)) and Amended Item Regulation S–K Operations (Item 303) 303(b)(1)—Liquidity and Capital 2. Regulation AB—Items 1112, 1114, and 1. Restructuring and Streamlining Resources) 1115 VerDate Sep<11>2014 23:27 Jan 08, 2021 Jkt 253001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\11JAR3.SGM 11JAR3 jbell on DSKJLSW7X2PROD with RULES3 Federal Register / Vol. 86, No. 6 / Monday, January 11, 2021 / Rules and Regulations 2081 3. Summary Prospectus in Forms S–1 and proposals.8 We also received B. Overview of the Final Amendments F–1 suggestions to modify or further We are adopting changes to Items 301, 4. Business Combinations—Form S–4, consider aspects of the proposed Form F–4, and Schedule 14A 302, and 303 of Regulation S–K that 5. Form S–20 amendments that commenters believed would reduce duplicative disclosure 9 F. Compliance Date could be clarified or improved. After and focus on material information. Our III. Other Matters reviewing and considering the public amendments: IV. Economic Analysis comments, we are adopting the majority • Eliminate Item 301 (Selected A. Introduction of the amendments as proposed. As Financial Data); and B. Baseline and Affected Parties discussed further below, in certain • Modernize, simplify, and C. Potential Benefits and Costs of the cases, we are adopting the proposed streamline Item 302(a) (Supplementary Amendments 1. Overall Potential Benefits and Costs rules with modifications that are Financial Information) and Item 303 2. Benefits and Costs of Specific intended to address comments received. (MD&A). Specifically, these Amendments amendments will: D. Anticipated Effects on Efficiency, 8 Comment letters for the Proposing Release are Æ Revise Item 302(a) to replace the Competition, and Capital Formation available at https://www.sec.gov/comments/s7-01- current requirement for quarterly E. Alternatives 20/s70120.htm. Unless otherwise indicated, tabular disclosure with a principles- V. Paperwork Reduction Act comment letters cited in this release are to the based requirement for material A. Summary of the Collections of Proposing Release. In addition, the SEC’s Investor Advisory Committee adopted recommendations retrospective changes; Information Æ Add a new Item 303(a), Objective, B. Summary of Comment Letters and (‘‘IAC Recommendation’’) with respect to the Revisions to PRA Estimates proposal and other disclosure matters, asking the to state the principal objectives of Commission and staff to: Reconsider whether to C. Effects of the Amendments on the MD&A; permit all