6360.1 As with significance testing, S-X Article 11 pro formas are based on the accounting used by the issuer. Amounts from the acquiree's or investee's historical financial statements presented in accordance with home-country GAAP or U.S. GAAP will need to be converted to the issuer's basis of accounting. This may be true even if the acquiree's or investee's historical financial statements are not required to be reconciled to U.S. GAAP because its significance falls below the 30% level specified in Item 17 of Form 20-F. The following table illustrates the basis of accounting on which the pro formas are presented under typical scenarios.

6360.2 The staff generally has not objected if an issuer, that otherwise would present its pro formas based on home-country GAAP with a reconciliation to U.S. GAAP, elects to present the pro formas directly in U.S. GAAP.