The SEC's Division of Corporation Finance Financial Reporting Manual, which is intended only to provide general guidance to Division staff, contains helpful information to auditors and preparers of issuer financial statements. The Manual was recently updated for the following issues, among others:
- Presentation of predecessor financial statements (Section 1170)
- Financial statement requirements for businesses recently acquired by equity-method investees of a target (Section 2005.5)
- Financial statement requirements in an initial public offering when a merger of entities under common control occurs at the closing date (Sections 2015.2 and 13400)
- Treatment of transaction costs and contingent consideration in the S-X significance tests for the purchase of an investment accounted for under the equity method (Section 2015.5)
- Computing the aggregate significance of individually insignificant acquired businesses(Section 2035.4)
- Assessing the age of financial statement requirements relating to an acquired or to-be-acquired business when the registrant and the acquiree have different fiscal year-ends(Section 2045.5)
- Significance testing and reporting upon adoption of FAS 141R and FAS 160 for a disposition of an equity interest that results in loss of control (Section 2100)
- Preparing pro forma financial information following a registrant's change in its fiscal year end(Section 3230.1)
- Impacts of FAS 141R and 160 on existing SEC filing and disclosure requirements and presentation of pro forma income statements (Section 3250.1)
- Presentation of discontinued operations in predecessor financial statements (Section 13210.2)
Download the updated Financial Reporting Manual |
