The SEC Rules

  Financial reporting for America's small businesses

Download the Flash player at

5 July 2007 SEC proposes consolidation of Regulation S-B rules into Reg. S-K

27 June 2007 SEC proposes reducing holding periods under Rule 144

15 Dec. 2006 SEC again extends Section 404 compliance date for non-accelerated filers

Archives: 2005




Washington, D.C., April 14, 2005 - The Securities and Exchange Commission announced a new rule that amends the effective dates for FASB Statement of Financial Accounting Standards No. 123 (Revised 2004), Share-Based Payment (SFAS No. 123R).

Under SFAS No. 123R, registrants would have been required to implement the standard as of the beginning of the first interim or annual period that began after June 15, 2005, or after December 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 SFAS No. 123R for their third quarter reports.

The SEC's new rule allows companies to implement SFAS No. 123R at the beginning of their next fiscal year, instead of the next reporting period, that begins on or after June 15, 2005, or on or after December 15, 2005 for small business issuers.  This means, for example, that the financial statements for a calendar year-end company need not comply with SFAS No. 123R until the interim financial statements for the first quarter of 2006 are filed with the Commission. The financial statements for a company, other than a small business issuer, with a June 30 year-end, however, must comply with SFAS No. 123R when the interim financial statements for the quarter beginning July 1, 2005 are filed. 

The SEC's rule does not change the accounting required by SFAS No. 123R; it only changes the effective dates.