Appendix C — Roadmap Updates for 2025
The table below summarizes the substantive
changes made in the 2025 edition of this Roadmap.
|
Section
|
Title
|
Description
|
|---|---|---|
|
On the Radar
| Updated to highlight recent divestiture activity. | |
|
1.2.3
|
Spin-Offs and Reverse Spin-Offs
|
Clarified discussion of the financial statements included in
a registration statement for the shares of the legal spinnee
in advance of a reverse spin-off.
|
|
2.1
|
Parent-Entity Net Investment in the
Carve-Out Entity
|
Added Example 2-1 to
illustrate the statement of stockholders’ equity in
carve-out financial statements.
|
|
2.2
|
Goodwill
|
Added Examples 2-2 and
2-3 to illustrate the allocation of goodwill
in carve-out financial statements.
|
|
2.3
|
Other Long-Lived Assets
|
Clarified discussion of the attribution of long-lived
assets.
|
|
2.4
|
Debt
|
Updated discussions of the attribution of (1) third-party
debt issued by a carve-out entity that is the legal obligor
and (2) parent-entity debt to the legal entity that is
included in the carve-out financial statements.
|
|
2.8.6
|
Contract Liabilities
|
Added new section to address the attribution
of a contract liability to the carve-out entity in
situations in which such entity has received consideration
from a customer and has an obligation to transfer goods or
services to the customer.
|
|
3.3
|
Allocation of Cash-Based Compensation Expense
|
Clarified discussion of the allocation of cash compensation
in proportion to the service provided.
|
|
4.4
|
Accounting Policies of the Carve-Out Entity
|
Added discussion of the requirement to disclose both the
basis of presentation and the accounting policies applied in
carve-out financial statements.
|
|
4.5
|
Segment Reporting
|
Clarified discussion of the applicability of the reportable
segment disclosures for entities undertaking an IPO or a
registered spin-off.
|