This Roadmap combines the SEC’s guidance on reporting for equity method investments with Deloitte’s interpretations (Q&As) and examples in a comprehensive, reader-friendly format.
The 2020 edition reflects the SEC’s May 2020 final rule that amends the financial statement requirements for acquisitions and dispositions of businesses, including real estate operations, and related pro forma financial information. The final rule modifies certain aspects of the significance tests in Regulation S-X, Rule 1-02(w), which registrants use to determine their requirements related to financial statements or financial information for equity method investments under Regulation S-X, Rules 3-09, 4-08(g), and 10-01(b)(1). The final rule must be applied for fiscal years beginning after December 31, 2020; however, early application is permitted. An appendix has been added to the Roadmap for registrants that will continue to apply the current requirements through 2020 (Appendix B).
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