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6520 Item 18 of Form 20-F — Basic Requirements
us SEC - Financial Reporting Manual
6520.1 Certain information is required to be disclosed under Item 18, but not Item 17. For example (list not all inclusive):
a. Reconciliations of the numerators and denominators used in computing basic and diluted EPS, and other EPS-related disclosures (ASC 260)
b. Segment information (ASC 280)
c. Fair value information (ASC 825)
d. Concentrations of credit risk (ASC 825-10-50-20)
e. Information about investment securities (ASCs 320, 321, and 326)
f. Information about off-balance sheet financial instruments ( ASC 815)
g. Disclosures about stock-based compensation to employees and non-employees (ASC 718, as appropriate)
h. Components of pensions and benefits other than pensions (ASC 715)
i. Components of tax expense and deferred tax liability/asset (ASC 740)
j. Statement of comprehensive income classification differences
k. Information about equity method investments (ASC 323 and S-X 4-08(g))
6520.2 Pervasive Impact of Differences Between Home-Country and U.S. GAAP
a. If differences between home-country and U.S. GAAP have such a pervasive impact on the financial statements that they render a normal reconciliation (as described above) confusing to investors, full or condensed financial statements prepared in accordance with U.S. GAAP may be necessary in order for the reader to fully understand the impact of the differences in accounting.
For example: A business combination accounted for as a purchase of another company by the registrant under home-country GAAP but as a reverse acquisition under U.S. GAAP (the registrant is acquired by another company) would most easily be understood if the registrant included, in addition to a description of the differences in accounting, audited financial statements prepared under U.S. GAAP. Those financial statements would reflect the change in basis of the registrant on the acquisition date and present the financial statements of the accounting acquirer prior to the date of acquisition as the financial statements of the registrant. See Topic 12 for additional guidance related to reverse acquisitions.
b. Similarly, expanded presentation formats and disclosures may be necessary in other circumstances, such as differences between home-country and U.S. GAAP in the application of pooling versus purchase accounting, in the non-consolidation versus consolidation of an entity, or in the classification of a business as continuing operations versus discontinued operations. (Last updated 9/30/2009)
This is a work of the U.S. Government
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