On December 22, 2017, the Securities and Exchange Commission (the “Commission”) provided staff guidance for public companies related to the preparation of their filings with the Commission in light of the recent passage of the Tax Cuts and Jobs Act.

Many reporting companies are in the midst of preparing their year-end financial statements and evaluating the effects of the Tax Cuts and Jobs Act on their companies’ financial results. For many companies, the Act may diminish the value of their deferred tax assets. This might trigger the re-measurement of, or the impairment of, an asset. To the extent that a company were to conclude that an impairment has occurred, a Form 8-K filing would be required. The Commission staff guidance addresses in Compliance and Disclosure Interpretation 110.02 the applicability of Item 2.06 of Form 8-K.