Reg recap

With regulators putting out new regs on the reg (okay, we’ll stop now), we thought it’d be helpful to recap some of the most important finance and accounting rules that are passed, proposed, or amended each month. (Note, of course, that you should read the full text of the regulations for all the deets.)

Here are July’s highlights:

Passed:

• SEC money market fund reforms: On July 12, the SEC released new rules intended to decrease the risk of runs on money market funds (MMFs). MMFs must charge liquidity fees if their daily net redemptions exceed 5% of their net assets, or if their boards deem it necessary, and must maintain a liquidity buffer of at least 25% of their total daily assets and at least 50% of their weekly assets. MMFs are also no longer allowed to use “gates” to temporarily suspend redemptions.
  
  Goes into effect: 60 days after the rule is published in the Federal Register
• SEC cybersecurity rules: On July 26, the SEC ruled that public US companies must disclose cyberattacks that have a material effect on their financial statements no later than four business days after they occur. To do so, they’ll file the new item 1.05 of Form 8-K. They also need to annually disclose information about how they identify, manage, and oversee cybersecurity risk on Regulation S-K Item 106 on their 10-Ks. Foreign companies will need to make similar disclosures.
  
  Goes into effect: The new Form 10-K disclosures will be required for fiscal years ending on or after December 15, 2023. The rule regarding Form 8-K disclosures is effective the later of 90 days after the rule is published in the Federal Register or December 18, 2023. See the SEC’s press release for exceptions.

Forthcoming:

• FASB reporting requirement for big expenses: The FASB voted to require US public companies to break out and disclose large expenses incurred by their business divisions on a quarterly and annual basis, the Wall Street Journal reported. Only companies that already report this information to their CEO, COO, or board’s executive committee will be subject to the rule, which the FASB expects to formally release this fall.
  
  Goes into effect: For annual reporting periods beginning on or after December 15, 2023

Updated:

• Global minimum tax delay: Large US companies now have an additional year before they’re subject to the global minimum tax (GMT) of 15%, the OECD announced this month. Now, they won’t be subject to the tax until 2026.

Other announcements:

• RIP LIBOR: 🪦 GASB hammered the final nail into LIBOR’s coffin this month, announcing that it’s “no longer an appropriate benchmark interest rate” as of July 1, 2023.