On the Radar — SEC reporting considerations for guarantees and collateralizations

Published on: 28 Aug 2023

SEC registrants may issue a variety of debt or debt-like securities to finance their operations. In certain cases, a registrant may offer credit enhancement arrangements under which (1) subsidiaries of the registrant guarantee the debt or debt-like securities or (2) the registrant pledges the securities of its affiliates as collateral. In addition, for various reasons, a subsidiary of the registrant (rather than the registrant) may issue debt or debt-like securities. While these structures or credit enhancement arrangements may be beneficial from a cost-of-capital perspective, registrants should consider the SEC reporting implications under SEC Regulation S-X, Rules 3-10, 3-16, 13-01, and 13-02, and related complexities. This publication briefly summarizes key issues and developments related to this topic.

The On the Radar is available on the Deloitte Accounting Research Tool Web site.

On the Radar — SEC reporting considerations for guarantees and collateralizations Image

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.