D.4 Pro Forma Financial Information
A pro forma balance sheet and income statement are generally
required under SEC rules if the business acquisition is deemed to be significant.
Such pro forma financial statements are required in Form 8-Ks that report such
acquisitions and in any registration statements filed by the registrant, as follows:
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Balance sheet — On the basis of the registrant’s latest balance sheet included in the filing, transaction accounting adjustments should be computed by assuming that the transaction was consummated on the balance sheet date. Such adjustments are limited to those that reflect the accounting for the transaction in accordance with U.S. GAAP or IFRS Accounting Standards, as applicable, and may include, among other items, the recognition of goodwill and intangible assets and adjustments of assets and liabilities to fair value on the balance sheet.
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Income statement — On the basis of the registrant’s latest fiscal year and interim period included in the filing, transaction accounting adjustments should be computed by assuming that the transaction occurred at the beginning of the fiscal year presented (usually the fiscal year before the acquisition year) and was carried forward through any interim period presented in the acquisition year.
For further information, see Chapter 4 of
Deloitte’s Roadmap SEC
Reporting Considerations for Business Acquisitions.