SEC Role and Standard Setting Process

Question 1

How does the SEC define a foreign private issuer?

Answer 1

-As any foreign issuer other than a foreign gov’t unless it meets following conditions:

More than 50% of outstanding voting securities owned directly or indirectly by US residents and any of following (Majority of executives US citizens or residents, More than 50% of assets located in US, Business administered principally in the US)

Question 2

What does the Office of the Chief Accountant of the SEC do?

Answer 2

• Houses technical expertise on accounting principles, auditing standards, and financial disclosure requirements
• Hold oversight of FASB and AICPA

Question 3

Do private companies have to adhere to SEC pronouncements?

Answer 3

-No