July 7, 2020
1:00 pm – 2:00 pm EDT
On May 21, 2020, the U.S. Securities and Exchange Commission adopted amendments to financial statement disclosures with respect to business acquisitions and dispositions required by Regulation S-X’s Rule 3-05 (Financial Statements of Businesses Acquired or to be Acquired (Rule 3-05)), Rule 3-14 (Special Instructions for Real Estate Operations to be Acquired (Rule 3-14)), Article 11 on Pro Forma Financial Information (Article 11), and other related rules and forms. The amended rules also amended investment companies’ financial reporting of acquisitions by adopting a new Rule 6-11 of Regulation S-X (Financial Statements of Funds Acquired or to be Acquired (Rule 6-11)) and revising Form N-14 for financial reporting of acquisitions involving investment companies. Topics that will be discussed in this briefing include:
- Revisions to the investment test and the income test for determining the significance of subsidiaries;
- Changes to financial statement requirements involving acquired or disposed businesses;
- Amendments to pro forma financial information requirements;
- Effectiveness and transition for the amendments; and
- Practical considerations of the amendments.