3.6 Key Differences Between Rules 3-05 and 3-14
This Roadmap does not reflect updates to the FRM made
after May 2025. See Preface for details.
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). Tenant financial statements may also be
needed for triple-net leases, if significant.
|