A more thorough explanation:

Regulation S-X is a rule created by the Securities and Exchange Commission (SEC) that outlines how companies should disclose financial information in their filings. This includes registration statements, periodic reports, and other documents filed with the SEC.

Regulation S-X applies to a wide range of filings, including initial public offerings (IPOs), periodic reports, tender offers, and proxy statements. It also applies to registration statements and shareholder reports filed under the Investment Company Act of 1940.

Regulation S-X sets out specific requirements for financial statements, including instructions for filing consolidated balance sheets, statements of comprehensive income and cash flows, and financial statements of businesses acquired or to be acquired. It also includes rules for pro forma financial information that must be included in a registration statement when a significant acquisition has occurred or is probable.

When a company wants to go public and sell shares to the public, it must file a registration statement with the SEC. This statement must include financial information that complies with Regulation S-X. For example, the company must provide a consolidated balance sheet that shows its assets, liabilities, and equity. It must also provide a statement of comprehensive income that shows its revenue, expenses, and net income.

Overall, Regulation S-X helps ensure that companies provide accurate and complete financial information to investors and the public.