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SEC says it will respect well-reasoned revenue judgments

Tammy Whitehouse | December 5, 2017

The Securities and Exchange Commission has signaled it doesn’t plan to get into ticky tacky spats with companies over the numerous detailed judgments they must exercise as they follow new revenue recognition rules beginning next year.

“We want to avoid regulating the more nuanced aspects of this standard one company at a time,” said Cicely LaMothe, an associate director in the Division of Corporation Finance at the SEC. The division plans to coordinate closely with the Office of the Chief Accountant in reviewing company filings as financial statements beginning rolling out next year reflecting the massive change in how to recognize revenue.

That doesn’t mean the SEC will overlook plain errors in applying the guidance or disclosures that are entirely missing, LaMothe said, but the staff has collectively concluded that it won’t be... To get the full story, subscribe now.