Securities Lawyer's Deskbook
                         published by The University of Cincinnati College of Law
UC Law logo


Accounting Rules
Form and Content of Financial Statements

Regulation S-X





Appendix C -- Who Is the "Parent Company" under Rule 3-10?


Example No. 1:

Company A is the "parent company" for purposes of applying Rule 3-10 to the subject securities.


Example No. 2:

Company A is the "parent company" for purposes of applying Rule 3-10 to the subject securities.


Example No. 3:

Company B is the "parent company" for purposes of applying Rule 3-10 to the subject securities. The consolidated financial statements of Company A may not be substituted for those of Company B, even if Company A's financial statements are substantially the same as Company B's. The parent company for purposes of Rule 3-10 must be an issuer or guarantor of the subject security.


Example No. 4:

Company B is the "parent company" for purposes of applying Rule 3-10 to the subject securities.


Example No. 5:

Company A is the "parent company" for purposes of applying Rule 3-10 to the subject securities. The consolidated financial statements of Company B may not be substituted for those of Company A, even if Company B's financial statements are substantially the same as Company A's. There are no exceptions to the parent company's obligation to provide the financial statements for a registrant under Rule 3-10(a).


Example No. 6:

Company A is the "parent company" for purposes of applying Rule 3-10 to the subject securities.


Example No. 7:



Company D is the "parent company" for purposes of applying Rule 3-10 to the subject securities.


Regulatory History


50 FR 49532, Dec. 2, 1985; 65 FR 51692, 51707, Aug. 24, 2000

Return to top

Notice to Users: The Deskbook is made available with the understanding that the University of Cincinnati College of Law is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. See Terms and Conditions of Use.  UC Brand Ingot

© Copyright 1998-2009, University of Cincinnati, All Rights Reserved
 Contact: ronald.jones@uc.edu