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Accelerated Filer

What Is an Accelerated Filer?

An accelerated filer refers to a specific category of public company in the United States, as defined by the Securities and Exchange Commission (SEC).

This designation is based on the company's public float—the total value of the publicly traded shares—falling within a certain range.

Accelerated filers are subject to more stringent reporting requirements, including faster filing deadlines for annual and quarterly reports, and the obligation to provide an assessment of the effectiveness of their internal control over financial reporting.

Accelerated Filer Explained

The classification of a company as an accelerated filer is intended to ensure that investors and the market have timely access to financial information about companies with significant public float, thereby increasing transparency and enhancing investor protection.

To qualify as an accelerated filer, a company must have a public float of more than $75 million but less than $700 million, as of the last business day of their second fiscal quarter, among other criteria.

These companies are required to file their annual report on Form 10-K within 75 days after the end of their fiscal year and their quarterly reports on Form 10-Q within 40 days after the end of each quarter.

Additionally, accelerated filers must have their internal control over financial reporting audited by an independent external auditor, who must then provide an attestation report on the effectiveness of these controls.

The Term Accelerated Filer in Different Legal Contexts

While the concept of an accelerated filer primarily pertains to securities regulation and corporate governance, it touches upon various areas of business law, including financial reporting, accounting, and investor relations.

The SEC's regulations surrounding accelerated filers are part of a broader framework designed to promote accurate and transparent financial reporting by publicly traded companies, which in turn supports investor confidence and market stability.

Common Misconceptions About the Meaning of Accelerated Filer

There's a common misconception that all public companies are classified as accelerated filers, but this isn't the case. Companies are designated as accelerated filers, non-accelerated filers, or large accelerated filers based on their public float, and not all companies meet the specific thresholds required for the accelerated filer status.

Another misunderstanding is that being an accelerated filer affects only the deadlines for SEC report filings. In reality, accelerated filers face not only tighter filing deadlines but also additional requirements, such as the mandatory audit of internal controls over financial reporting.

Finally, there's the misconception that once a company achieves accelerated filer status, this designation is permanent. A company's status as an accelerated filer is, in fact, subject to change from year to year, depending on its public float and other relevant criteria.

Should a company's public float decrease below the set threshold for accelerated filers or exceed the threshold for large accelerated filers, its filing status and the associated requirements will change accordingly, demonstrating the dynamic nature of this classification.

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What Is an Accelerated Filer?

Accelerated Filer Explained

The Term Accelerated Filer in Different Legal Contexts

Common Misconceptions About the Meaning of Accelerated Filer

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