Earlier this summer, the SEC proposed amendments to improve disclosures relating to acquisitions and dispositions of businesses under:
- Rule 3-05,
- Rule 3-14 and
- Article 11 of Regulation S-X.
The proposed rule change impacts small businesses and their investors.
For investors, the amendments could improve the financial information about acquired and disposed businesses to facilitate more timely access to capital and to reduce the complexity and cost to prepare the disclosure.
In addition, the proposal could decrease the cost of disclosing financial statements for acquired businesses, which could improve capital raising opportunities for small businesses.
Find out more detail in the video below from the SEC’s Office of the Advocate for Small Business Capital:
The full press release and details of the proposed amendments are on the SEC’s website at: www.sec.gov/news/press-release/2019-65.