The initial adoption of accounting policies is required when economic events and business transactions (1) occur for the first time and have a significant effect on the company’s financial presentation, (2) become material that were previously considered immaterial in their effect on the company’s financial reporting, and (3) occur that are significantly different from previous events and transactions.
Disclosure of Changes in Existing Accounting Policies.
SEC rules and accounting standards require public companies to disclose changes in their existing accounting policies and practices.
Acceleration of Periodic Report Filing Dates and Real-Time Disclosures.
Section 409 of SOX authorizes the SEC to issue rules requiring companies to make public disclosure of their financial information on a “rapid and current basis.”