For companies numbed by the prospect of multiple restatements because of problems with historical stock option grants, the Securities and Exchange Commission is poised to offer instructions on an alternative: a catch-up 10-K disclosure that creates an escape from daunting restatements, but not the long arm of enforcement officers.
In an address to the American Institute of Certified Public Accountants, Carol Stacey, deputy chief accountant with the SEC’s Division of Corporation Finance, said her office is putting the finishing touches on guidance that will give companies instructions on how to do a “comprehensive, catch-up 10-K” if they’re looking at multiple periods that require adjustments.
