Practical tip: In evaluating the significance of an equity method investee, the SEC's new interpretive guidance must be considered for all periods presented (No. 2011-01)

DOWNLOAD

Registrants must evaluate the significance of their equity-method investees to determine whether footnote disclosure under Rule 4-08(g) of Regulation S-X or separate financial statements under Rule 3-09 of Regulation S-X is required for any such investee in the registrant's annual report on Form 10-K. In December 2010, the SEC issued new interpretive guidance for measuring the significance of equity method investees. This new interpretive guidance should be used in measuring the significance of an equity-method investee for all periods presented.