What’s Changing In Forms 10-K and 10-Q?
If you own or work in the regulatory reporting office of a company in the United States, then it is likely that you are already familiar with iXBRL reporting for Securities and Exchange Commission filing. You probably have the reporting dates on your schedule even if you use an iXBRL software for SEC reports.
You may also be aware that certain parts of the reporting system still follow the legacy methods of filing compliance reports. The SEC has recently been working to modernize the reporting ecosystem. One such area is the Share Repurchase Disclosures. The SEC has mandated amendments requiring public companies to elaborate and disclose deeper details about their share repurchases and to tag those disclosures in Inline XBRL.
Apart from modernizing the process, these steps have been taken to provide investors with enhanced information to assess the cause and effect of share repurchases.
All these key provisions significantly relate to Regulation S-K and Rule 10b5-1 through Forms 10-K and Form 10-Q. Since these form a part of the compliance process, it is essential to consider these new SEC disclosure requirements while re-calibrating your company’s quarterly review and developing a check process.
Here are the main aspects of Forms 10-K and Form 10-Q that are likely to be affected by the amendment:
- Item 703 of Regulation S-K previously required monthly repurchase data. This rule has been amended to require daily repurchase data tagged in Inline iXBRL every quarter.
- A new exhibit numbered 26 has to be filed and submitted along with Form 10-K and Form 10-Q. The exhibit must be tagged in iXBRL and should have information on purchases by the issuer or any affiliated purchaser for each day of the covered quarter.
- These changes have to be adopted and implemented sooner than you think. They must be included in the 10-Q or 10-K forms covering the first full fiscal quarter beginning on or after October 1, 2023.
Therefore, you must reassess how to prepare iXBRL reports and consider taking the help of a reliable provider for SEC iXBRL tagging services. If you don’t have one already, you should research iXBRL software for SEC filing – it saves you time and effort and ensures you never have to pay a penalty.
A regulatory reporting expert like DataTracks is adept in dealing with the dynamism of the compliance reporting ecosystem. With over 350,000 successful reports to our credit and more than 20,000 companies placing their trust in us, we seamlessly integrate updates into our reporting solutions.
Get in touch with us today to start your effortless compliance reporting journey.