Saturday, January 13, 2018 11:50:42 AM
Most important part of RCP's last FORM ADV (imo) in regard to financial filing requirements was the following statement:
RCP will operate as an indirect wholly-owned subsidiary of P10 ...
By calling themselves a subsidiary they are saying the following:
a subsidiary is a business whose majority of stock is owned by a holding company.
Since the only stock RCP owns is PIOE stock, I assume that makes them 100% or wholly owned by P10.
So how do subsidiaries and their parent prepare their financial statements?
Generally accepted accounting principles requires a company to use consolidated accounting when it owns a controlling stake in another business.
In consolidated accounting, the parent company essentially treats the subsidiary company as if it doesn't exist. All of the subsidiary company's assets and liabilities appear on the parent company's balance sheet, and all of the subsidiary company's revenue, expenses, gains and losses appear on the parent company's income statement. The companies' financial results, therefore, are consolidated on a single set of statements. Internally, the parent is free to treat the subsidiary as a completely separate entity, but it must consolidate its finances in statements prepared for outside observers, such as banks, regulators and potential investors.
The above two paragraphs are from the link below:
http://smallbusiness.chron.com/consolidation-vs-equity-method-accounting-55300.html
The SEC spells out its requirements in various rules and regulations. If you want the latest see the link below:
https://www.sec.gov/rules/final/33-7878.htm
I have pulled out paragraph (i) from this doc and which is the remainder of this post. Sorry for the HUGE length, but hopefully this will save someone a lot of time looking this info up themselves. So here it is:
(i) Instructions for preparation of the condensed consolidating financial information required by paragraphs (c), (d), (e) and (f) of this section.
(1) Follow the general guidance in §210.10-01 for the form and content for condensed financial statements and present the financial information in sufficient detail to allow investors to determine the assets, results of operations and cash flows of each of the consolidating groups;
(2) The financial information should be audited for the same periods that the parent company financial statements are required to be audited;
(3) The parent company column should present investments in all subsidiaries under the equity method;
(4) The parent company's basis shall be "pushed down" to the applicable subsidiary columns to the extent that push down would be required or permitted in separate financial statements of the subsidiary;
(9) Disclose any significant restrictions on the ability of the parent company or any guarantor to obtain funds from its subsidiaries by dividend or loan;
(10) Provide the disclosures prescribed by §210.4-08(e)(3) with respect to the subsidiary issuers and subsidiary guarantors;
(11) The disclosure:
(i) May not omit any financial and narrative information about each guarantor if the information would be material for investors to evaluate the sufficiency of the guarantee;
(ii) Shall include sufficient information so as to make the financial information presented not misleading; and
(iii) Need not repeat information that would substantially duplicate disclosure elsewhere in the parent company's consolidated financial statements; and
(12) Where the parent company's consolidated financial statements are prepared on a comprehensive basis other than U.S. Generally Accepted Accounting Principles, reconcile the information in each column to U.S. Generally Accepted Accounting Principles to the extent necessary to allow investors to evaluate the sufficiency of the guarantees. The reconciliation may be limited to the information specified by Item 17 of Form 20-F (§249.220f of this chapter). The reconciling information need not duplicate information included elsewhere in the reconciliation of the consolidated financial statements.
Recent PX News
- P10 Hosts Investor Day • GlobeNewswire Inc. • 09/19/2024 11:30:31 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/19/2024 11:03:45 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/17/2024 12:06:36 PM
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- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 08/09/2024 12:02:21 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/09/2024 12:00:17 PM
- P10 Reports Second Quarter 2024 Earnings Results • GlobeNewswire Inc. • 08/08/2024 08:05:25 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/05/2024 12:33:02 PM
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- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 08/02/2024 04:15:14 AM
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- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 07/19/2024 08:16:43 PM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 07/19/2024 08:10:55 PM
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- P10 Schedules Second Quarter 2024 Earnings Release for Thursday, August 8, 2024 • GlobeNewswire Inc. • 07/18/2024 12:30:33 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 07/12/2024 09:31:34 PM
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