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Perspectives

A roadmap to SEC reporting considerations for equity method investees (2018)

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 staff’s disclosure effectiveness initiative, a broad-based review of (1) the disclosures required by the SEC’s rules and (2) the presentation and delivery of those disclosures. As part of the initiative, the SEC issued a release in 2015 requesting public comment 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. We understand that the SEC staff is continuing to evaluate the public comments it has received on the release. Stay tuned for future developments related to the initiative.

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Subscribe to receive Roadmap series publications via e-mail. Archives are available on the US GAAP Plus site.

 

The Roadmap Series contains periodic collections of our accounting guidance on selected topics of broad interest to the financial reporting community.

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