SEC Adopts Amendments to Financial Disclosures Relating to Acquired and Disposed Businesses
On May 21, 2020, the Securities and Exchange Commission (the “SEC”) adopted amendments to certain requirements in Regulation S-X related to financial information for acquisitions and dispositions of businesses, including real estate operations. The SEC also adopted new financial disclosure requirements, including Rule 6-11 of Regulation S-X, for acquisitions involving investment companies registered under the Investment Company Act and business development companies (collectively, “investment companies”). The SEC adopted the amendments largely as proposed on May 3, 2019, with some modifications to address comments received from market participants.
The amendments will be effective on January 1, 2021. However, voluntary compliance with the final amendments is permitted in advance of the effective date.