This Roadmap combines the SEC’s guidance on reporting for equity method investments with Deloitte’s interpretations (Q&As) and examples in a comprehensive, reader-friendly format.

The financial statements and disclosures required by SEC rules related to significant equity method investments are important to stakeholders because such investments can significantly affect a registrant’s financial results and reporting. Further, equity method investees are not consolidated, so they are not subject to the same disclosure requirements that may apply to consolidated subsidiaries under U.S. GAAP.

We are continuing to monitor developments related to the SEC’s disclosure effectiveness initiative and its request for public comments on the effectiveness of the financial disclosure requirements in Regulation S-X that apply to certain entities other than the registrant, including the reporting guidance for equity method investees.

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