goglcounter.blogg.se

Rule of rose walk through
Rule of rose walk through





rule of rose walk through

As such, the amendments should provide additional certainty to REITs regarding the timing and content of disclosures required under Rule 3-14, even where the amendments do not substantively change current reporting and disclosure practices under the SEC staff’s interpretive guidance. The amendments codify much of this guidance with modifications to eliminate many of the historical differences between Rule 3-14 and Rule 3-05. Disclosure practices related to acquisitions of real estate operations developed over time largely in response to a fairly large body of SEC staff interpretive guidance that addressed ambiguities in Rule 3-14. Prior to the amendments, there were significant differences between the requirements for acquisitions of real estate operations and for other business.

rule of rose walk through

With respect to Rule 3-14, the amendments also serve to more closely align the disclosure requirements for acquisitions of real estate operations with those applicable to acquisitions of other businesses, while preserving important differences where unique real estate industry considerations warrant differentiated disclosure. As a whole, the amendments narrow the requirements to file financial statements for significant acquisitions, consistent with the SEC’s objective of reducing the costs to prepare required disclosure, while also rationalizing the tests used to determine whether an acquisition is significant. The amendments are intended to improve the financial information about acquired or disposed businesses available to investors, facilitate more timely access to capital, and reduce the complexity (and cost to prepare) of the required disclosure. For further information on the amendments to Rule 3-05, which applies to acquired businesses that are not real estate operations, and new Rule 6-11, which applies to investment companies and business development companies subject to the Investment Company Act of 1940, please see our alerts available here and here. The purpose of this article is to provide an overview of the disclosure requirements applicable to significant property acquisitions by REITs while also highlighting some of the major changes effected by the amendments. Given the advantages the amended rules have over the current requirements, we expect that many REITs will avail themselves of this option. Voluntary early compliance is permitted if the amendments are applied in their entirety from the date of early compliance.

rule of rose walk through

Registrants must comply with the amended rules for acquisitions and dispositions that are probable or consummated after that date. Registrants will be required to comply with the amended rules at the beginning of their fiscal years beginning after December 31, 2020.

rule of rose walk through

Among other major changes, the amendments increased the quantitative significance threshold for acquisitions of real estate operations from 10% to 20% and eliminated elements of the Rule 3-14 disclosure regime that required registrants to file financial statements for insignificant acquisitions under circumstances where there was no corresponding requirement under Rule 3-05. Overall, the amendments eliminate many of the current inconsistencies between Rule 3-05 and Rule 3-14 and should reduce the reporting burden for REITs in connection with acquisitions and dispositions. As part of these amendments, the SEC overhauled Rule 3-14 of Regulation S-X, which applies to acquisitions of real estate operations and is therefore of critical importance to real estate investment trusts (“REITs”). The Securities and Exchange Commission (the "SEC") recently adopted amendments to Regulation S-X and related rules and forms that will streamline and reduce the financial statements required to be filed in connection with significant business acquisitions by all SEC registrants. Environmental, Social and Corporate Governance (ESG).Product Liability & Consumer Litigation.Employee Benefits & Executive Compensation.Business Solutions, Governance, Restructuring & Bankruptcy.







Rule of rose walk through