Chapter 3 — Real Estate Operations Acquired or to Be Acquired

3.6 Key Differences Between Rules 3-05 and 3-14

The table below highlights some of the key differences between the requirements in Rules 3-05 and 3-14.

	Rule 3-05	Rule 3-14
Number of significance tests	Three (investment, asset income)	One (modified investment)
Significance thresholds for determining the number of financial statement periods to be presented	Tiered threshold (exceeds 20 percent but not 40 percent and exceeds 40 percent)	Exceeds 20 percent significance to the acquirer
Number of financial statement periods to be presented	One or two years and current year-to-date interim period (with prior-year comparative period if required) depending on the level of significance	One year and current year-to-date interim period for real estate operations acquired
Types of financial statements to be presented	Full financial statements (abbreviated financial statements are allowed in certain circumstances)	Abbreviated income statements only (related to the property)

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This SEC Reporting Interpretations manual provides comprehensive guidance; however, the manual does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.