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What is a 3-14 audit as it relates to a real estate investment trust? When is it required by the SEC?


This is for a REIT although I'm not sure if it is particular to real estate acquisitions.

Basic Requirements (Securities Act and Exchange Act Reporting)

Rule 3-14 of Regulation S-X requires that financial
statements of each operating real estate property (or group of
related properties) acquired that is significant at the 10% level
or higher be filed in a Form 8-K and in all transactional filings
(registration statements and proxies). The significance test is
computed by comparing the registrant's investment in the property
to the registrant's total assets at the latest audited fiscal
year filed with the Commission.

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