emerging growth company

An emerging growth company is a business with total annual gross revenues under $1 billion for the most recently ended fiscal year. Total annual gross revenues must be indicated on the business income statement presentation according to U.S. GAAP (generally accepted accounting principles) or IFRS (International Financial Reporting Standards) as issued by the IASB (International Accounting Standards Board). To qualify as an emerging growth company, a business’ initial sale of common equity securities must have occurred after December 8, 2011.

The JOBS Act (Jumpstart Our Business Startups Act) created the category of “emerging growth company” as a qualification for eased regulations as stipulated by the Act. The category is defined within the Securities Act and the Exchange Act.