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1 H.R. 5054, Small Company Disclosure Simplification Act of 2018 1 (December 20, 2018)

handle is hein.congrec/cboscds0001 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE U COST ESTIMATE December 20, 2018 H.R. 5054 Small Company Disclosure Simplification Act of 2018 As ordered reported by the House Committee on Financial Services on June 7, 2018 Under current law, securities issuers who are required to file certain reports with the Securities and Exchange Commission (SEC) must provide that information in a specific data format known as eXtensibile Business Reporting Language (XBRL). H.R. 5054 would direct the SEC to conduct an analysis and report on the costs and benefits of the requirement to use XBRL. Under the bill, issuers with total annual gross revenues of less than $250 million would be exempt from the XBRL requirements for a minimum of three years and maximum of five years after enactment. The length of the exemption would depend on the outcome of the SEC analysis and report. H.R. 5054 also would exempt emerging growth companies from the XBRL reporting requirement.' Using information from the SEC on the costs of similar activities, CBO estimates that implementing H.R. 5054 would cost $1 million for the agency to amend its reporting rules, conduct the analysis, and prepare a report. However, the SEC is authorized to collect fees sufficient to offset its annual appropriation; therefore, CBO estimates that the net effect on discretionary spending would be negligible, assuming appropriation actions consistent with that authority. Implementing H.R. 5054 also could substantially increase the costs to the SEC by requiring the agency to engage in a more labor intensive process to review and analyze financial data presented in alternative forms to XBRL. However, any such costs would depend on the number of companies that elect to stop using XBRL and on the outcome of the required SEC report; therefore, CBO has no basis for estimating any such increase in SEC costs. Enacting H.R. 5054 would not affect direct spending or revenues; therefore, pay-as-you- go procedures do not apply. CBO estimates that enacting H.R. 5054 would not increase net direct spending or on- budget deficits in any of the four consecutive 10-year periods beginning in 2029. 1. An emerging growth company is one that has issued or proposes to issue stock and had total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year; companies can retain that designation for up to five years.

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