Parent-company-only statements are required by the Securities and Exchange Commission when the restricted net assets of all subsidiaries of a bank holding company exceed 25% of consolidated net assets.

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) requires parent-company-only financial statements when the restricted net assets of subsidiaries exceed 25% of the consolidated net assets for bank holding companies. This requirement ensures transparency and provides a clearer view of the parent company's standalone financial health, separate from its subsidiaries.

Parent-Company-Only Statements Are Required by the Securities and Exchange Commission