On May 21, 2020, the SEC announced the adoption of amendments to its disclosure requirements relating to acquisitions and dispositions of businesses. The amendments, proposed in May 2019, impact SEC Regulation S-X and related rules and forms, and would implement some significant changes, such as (1) modifying the tests used to determine whether an acquired business is “significant,” (2) reducing the number of fiscal years for which financial statements of an acquired business must be provided, and (3) clarifying when financial statements and pro forma financial information are required. The changes are intended to simplify determinations regarding the significance of a subsidiary or a business being acquired or disposed of and to improve the relevance and quality of financial information provided with respect to acquisitions and dispositions of significant subsidiaries or businesses. The amendments become effective on January 1, 2021, with early compliance permitted.
A detailed discussion of the new rules will appear in an upcoming post on Gunster’s Securities Edge blog. If you have any questions on the amendments before then, please contact Gunster securities law and corporate governance practice leader Bob Lamm.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
About Gunster
Gunster, Florida’s law firm for business, provides full-service legal counsel to leading organizations and individuals from its 13 offices statewide. Established in 1925, the firm has expanded, diversified and evolved, but always with a singular focus: Florida and its clients’ stake in it. A magnet for business-savvy attorneys who embrace collaboration for the greatest advantage of clients, Gunster’s growth has not been at the expense of personalized service but because of it. The firm serves clients from its offices in Boca Raton, Fort Lauderdale, Jacksonville, Miami, Naples, Orlando, Palm Beach, Stuart, Tallahassee, Tampa Bayshore, Tampa Downtown, Vero Beach, and its headquarters in West Palm Beach. With more than 280 attorneys and consultants, and over 290 committed professional staff, Gunster is ranked among the National Law Journal’s list of the 500 largest law firms and has been recognized as one of the Top 100 Diverse Law Firms by Law360. More information about its practice areas, offices and insider’s view newsletters is available at www.gunster.com.
