5340.1 Smaller reporting companies may choose compliance with either the smaller reporting company scaled disclosure requirements or the larger company disclosure requirements on an item-by-item or "a la carte" basis for each filing. Disclosures should be provided consistently and should be consistent with the legal requirements under the federal securities laws, including Regulation C, Rule 408 and Exchange Act Rule 12b-20. It is also important that disclosures permit investors to make period-to-period comparisons.

5340.2 To the extent the smaller reporting company scaled item requirement is more rigorous than the same larger company item requirement, smaller reporting companies are required to comply with the more rigorous, smaller reporting company disclosure.