On Point. – Target and Pro Forma Financial Statement Requirements for Significant Acquisitions

US reporting companies planning, or have completed, a significant acquisition of a business may be required to file separate target financial statements, as well as related pro forma financial statements under Rule 3-05 and Article 11 of Regulation S-X.  The specific US Securities and Exchange Commission rules and financial reporting obligations triggered by a significant acquisition can be quite complex, requiring careful evaluation by an acquiring company.  This note discusses the SEC’s financial reporting and disclosure requirements triggered by a company’s significant business acquisition.