On The Horizon: SEC proposes to extend ‘test-the-waters’ accommodation

On the Horizon newsletter Contents SEC proposes to extend ‘test-the-waters’ accommodation to all issuers Comment letter issued

SEC proposes to extend ‘test-the-waters’ accommodation to all issuers On Feb. 19, the SEC issued a Proposed Rule, Solicitations of Interest Prior to a Registered Public Offering, which would extend the “test-the-waters” accommodation, currently available only to emerging growth companies (EGCs), to all issuers, including investment companies. The proposal would permit non-EGC issuers to communicate with certain investors to gauge interest in a contemplated offering either before or after filing a registration statement for an IPO or other proposed registered offering.

The comment period ends on April 29, 2019.

Comment letter issued On Feb. 15, the firm issued a comment letter in response to the FASB’s proposed ASU, Intangibles – Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities.

© 2019 Grant Thornton LLP, U.S. member firm of Grant Thornton International Ltd. All rights reserved. This Grant Thornton LLP On the Horizon provides information and comments on current accounting and SEC reporting issues and developments. It is not a comprehensive analysis of the subject matter covered and is not intended to provide accounting or other advice or guidance with respect to the matters addressed in this publication. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this publication. For additional information on topics covered in this publication, contact a Grant Thornton client-service partner.