Bill > HR3343

This bill modifies financial reporting requirements for emerging growth companies (EGCs), which are typically smaller, newer public companies, by reducing their financial statement disclosure obligations. Specifically, the bill allows EGCs to avoid presenting financial statements for acquired companies or providing detailed financial information for periods prior to the earliest audited period they included in their initial public offering (IPO). This means that when an emerging growth company goes public or applies to be listed on an exchange, they only need to provide financial statements starting from their earliest audited period, rather than having to compile and present potentially complex historical financial data from acquired companies. The changes apply to both the Securities Act of 1933 and the Securities Exchange Act of 1934, and continue to apply even after a company is no longer considered an emerging growth company. The goal appears to be reducing regulatory burdens and compliance costs for smaller, growing businesses, potentially making it easier for them to go public and access capital markets.

Business and Industry, Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/house-bill/3343/all-info