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.
