1.3 Summarized Financial Information (Rule 4-08(g))
To determine whether summarized financial information is required in
the footnotes to the annual financial statements under Rule 4-08(g), a registrant must apply all
three significance tests (investment, income, and asset tests) for each equity
method investee, either individually or as part of an agreggated group. If the
highest level of significance calculated in any of the three tests is:
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Ten percent or less — Summarized financial information is not required.
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Greater than 10 percent — The registrant’s annual financial statements must include summarized financial information for all equity method investees. Such information should not be labeled “unaudited.” Summarized financial information should be complete and should cover all equity method investees (not just the investee or investees that are significant).
In certain circumstances, summarized financial information otherwise
required by Rule 4-08(g) may be omitted if separate financial statements of the
equity method investee are included when the registrant files its Form 10-K. See
Section 4.3 for
additional interpretive guidance on this accommodation provided by SAB Topic 6.K.4(b).