SEC amends disclosure rules for acquired and disposed businesses

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In depth , PwC US Jun 03, 2020

On May 21, the SEC amended its disclosure requirements applicable to acquisitions and dispositions of businesses, including real estate operations and investment companies. Read our summary of the new provisions.

At a glance

On May 21, the SEC amended its disclosure requirements applicable to acquisitions and dispositions of businesses, including real estate operations and investment companies.

Among other changes, the amendments include:

  • updating the tests used to determine significance; 
  • conforming the significance threshold and tests for a disposed business to those used for an acquired business; 
  • revising the pro forma financial information requirements; and 
  • reducing the maximum number of years for which financial statements under Regulation S-X Rule 3-05 are required to two years.

The amendments are intended to improve the financial information about acquired or disposed businesses provided to investors, facilitate more timely access to capital, and reduce the complexity and costs to prepare the disclosures.

For a deeper discussion, please contact:

John May

SEC Services Leader, National Professional Services Group, PwC US

Email

Kyle Moffatt

Partner, National Professional Services Group, PwC US

Email

Diane Howell

Partner, National Professional Services Group, PwC US

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Kaitlin Valenti

Director, National Professional Services Group, PwC US

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David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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