Author's Note: PART 2 of this article is a continuation from PART 1 which was discussed in a previous publication. Please see PART 1 of this article for an initial discussion on the accounting literature regarding the Securities and Exchange Commission's ('SEC') initial ruling on the restatement of Prospect Capital Corp's ( NASDAQ: PSEC ) financials to incorporate the consolidation of certain "wholly-owned" holding companies. PART 1 helps lead to a better understanding of the topics and analysis that will be discussed in PART 2. The link to PART 1's analysis is provided below: