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SEC's Division of Corporation Finance Updates its Financial Reporting Manual
Practical Law Legal Update 0-585-3225 (Approx. 3 pages)
SEC's Division of Corporation Finance Updates its Financial Reporting Manual
by Practical Law Corporate & Securities
| Published on 21 Oct 2014 • USA (National/Federal) |
The SEC's Division of Corporation Finance updated its Financial Reporting Manual.
On October 20, 2014, the SEC's Division of Corporation Finance published an updated version of its Financial Reporting Manual. The revised manual reflects changes to the guidance on:
- Required predecessor financial statements after the acquisition of a business by a special purpose acquisition company (SPAC) (Section 1170.2).
- Acquisitions of working interests in oil and gas properties (Section 2010.4).
- The meaning of "individually insignificant" acquisitions, as that term is used in Rule 3-05 of Regulation S-X (Section 2035.2).
- Real estate acquisitions (Sections 2305.3, 2330.5 and 2340).
- Pro forma financial information for a business combination to be accounted for as a reorganization of entities under common control (Section 3230.2).
- Reverse mergers by foreign companies (Sections 6410.4 and 6410.5).
The revised manual also reflects the deletion of guidance on development stage companies (Sections 1180 and 6510.12).
A summary of the revisions appears on page one of the revised manual. The revised sections are marked with the date tag "Last updated: 10/20/2014."
For more information on SEC financial reporting requirements, see Practice Note, Regulation S-X: What Lawyers Need to Know. For an overview of the sources of law and regulation of accounting, auditing and financial reporting, see Practice Note, Accounting, Auditing and Financial Reporting in the US: Governing Authorities.