Bill > HR4164

This bill, titled the Small Company Disclosure Simplification Act, aims to ease reporting burdens for smaller public companies by exempting them from certain requirements to use Extensible Business Reporting Language (XBRL), a digital format for financial data. Specifically, "emerging growth companies" (a category of newer, smaller public companies) and other issuers with less than $250,000,000 in total annual gross revenues would no longer be mandated to use XBRL for their financial statements and periodic reports filed with the Securities and Exchange Commission (SEC), though they can still choose to do so. The exemption for these smaller companies would last for five years after the bill's enactment or until the SEC determines, after an analysis, that the benefits of XBRL reporting for these companies outweigh the costs. The bill also requires the SEC to update its regulations to reflect these exemptions and to conduct a detailed analysis of the costs and benefits of XBRL for smaller companies, considering factors like efficiency, competition, and capital formation, and to report its findings and recommendations to Congress.