Favorited Content
SEC amends disclosure rules for acquired and disposed businesses
- updating the tests used to determine significance and expanding the use of pro forma financial information when measuring significance;
- conforming the significance threshold and tests for a disposed business to those used for an acquired business;
- permitting abbreviated financial statements for certain acquisitions of a component of an entity;
- revising the pro forma financial information requirements;
- reducing the maximum number of years for which financial statements under Regulation S-X Rule 3-05 are required to two years;
- modifying the disclosure requirements relating to the aggregate effect of acquisitions for which financial statements are not (or not yet) required;
- aligning many of the provisions of Rule 3-14 relating to acquisitions of real estate operations with those under Rule 3-05 relating to acquisitions of other businesses; and
- providing tailored financial reporting requirements for fund acquisitions by registered investment companies and business development companies.
1Amended Rules 8-04, 8-05, and 8-06 provide corresponding guidance for Smaller Reporting Companies.
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.