Deloitte
Accounting Research Tool
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On the Radar

On the Radar

On the Radar

SEC registrants may issue a variety of securities to finance their operations. In certain cases, a registrant may offer credit enhancement arrangements under which (1) subsidiaries of the registrant guarantee the debt or debt-like securities or (2) the registrant pledges the securities of its affiliates as collateral. In addition, for various reasons, a subsidiary of the registrant (rather than the registrant) may issue debt or debt-like securities. While these structures or credit enhancement arrangements may be beneficial from a cost-of-capital perspective, registrants should consider the SEC reporting implications under SEC Regulation S-X, Rules 3-10, 3-16, 13-01, and 13-02, and related complexities.
Financial Disclosures