Bill > S3216

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 omit acquired company financial statements for any period before their earliest audited financial period presented during their initial public offering (IPO). Even after an EGC loses its emerging growth company status, it will not be required to retroactively provide financial statements for periods prior to its IPO's earliest audited period. The bill amends two key securities laws—the Securities Act of 1933 and the Securities Exchange Act of 1934—to implement these changes. By reducing the financial reporting burden, the bill aims to make it easier and less expensive for smaller companies to go public and raise capital, potentially encouraging more companies to enter the public markets and supporting entrepreneurial growth.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/3216/all-info