Practical tip: Determining financial statement presentation for the acquisition of selected parts of an entity (No. 2014-02)

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Practical tip 01/09/2014 by Assurance services
Practical tip: Determining financial statement presentation for the acquisition of selected parts of an entity (No. 2014-02)

At a glance

This Practical tip highlights the guidance related to the determination of the financial statement presentation for the acquisition of selected parts of an entity.

A registrant might acquire selected parts of an entity as opposed to the entire operations of an entity. Whether the significant business acquired represents “substantially all” of an entity or “less than substantially all” of an entity will determine the financial statement presentation of the acquired business for purposes of complying with the separate financial statement reporting requirements under Rule 3-05 of Regulation S-X. 

This Practical tip explains this guidance and includes examples to help you apply it in practice.