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SEC improves financial disclosures about acquisitions and dispositions of businesses

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May 21, 2020

On May 21, 2020, the SEC issued a final rule, “Amendments to Financial Disclosures About Acquired and Disposed Businesses”. The final rule amends the SEC’s rules and forms “to improve their application, assist registrants in making more meaningful determinations of whether a subsidiary or an acquired or disposed business is significant, and to improve the disclosure requirements for financial statements relating to acquisitions and dispositions of businesses, including real estate operations and investment companies.”

Among other changes, the amendments:

The final rule will become effective at the beginning of a registrant’s fiscal year that starts after December 31, 2020 (e.g. January 1, 2021, for calendar-year-end companies); however, voluntary compliance is permitted before the effective dates as long as the final rule is applied in its entirety.

Review the final rule on the SEC's website.

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