Accounting and Reporting Advisory Services Able to provide solutions to complex accounting issues with a pragmatic approach because we are well versed with the challenges on both sides of the table

Technical Accounting and Reporting

We have in-depth experience in researching, analyzing, and documenting various technical accounting and reporting matters and provide assistance with the following areas:

Adoption of Revenue Recognition Standard (ASC 606)
  • Drafting ASC 606 adoption position paper and preparing underlying schedules
  • Drafting revenue recognition accounting policy and financial statements foot note disclosures
  • Preparing standalone selling price (SSP) schedules and listing of adjusting journal entries for monthly recording in the general ledger
  • Assisting with the audit of the above items and ongoing support

Adoption of Lease Accounting Standard (ASC 842)
  • Drafting ASC 842 adoption position paper and preparing underlying schedules to support ROU assets and lease liabilities amounts in the financial statements
  • Drafting lease accounting policy and financial statements foot note disclosures
  • Assistance with identification of embedded leases 
  • Determination of incremental borrowing rates (IBR) 
  • Preparing adjusting journal entries for monthly recording in the general ledger
  • Assisting with the audit of the above items and ongoing support

Other Technical Accounting and Reporting Matters
  • Adoption of new accounting standards
  • Preparation of technical accounting memos on complex financial instruments, including convertible debt and equity financings, including analyzing embedded derivative features under ASC 470, ASC 480 and ASC 815
  • Prepare EPS calculations and memos
  • Preparation of technical memos for accounting of internal-use Software capitalization (ASC 350-40)
  • Preparation of technical accounting memos for accounting of costs incurred to develop or purchase software to be sold, leased or otherwise marketed (ASC 985-20)
  • Preparation of technical accounting memos for Goodwill and intangible assets impairment (ASC 350 and ASC 360)
  • Accounting of Stock-Based Compensation (ASC 718)
    • Preparation of calculations and memos to support inputs and assumptions used in the Black Scholes Model
    • Preparation of accounting memos related to performance and market-based stock awards 
    • Preparation of accounting memos related to modifications, secondary transactions and other matters
  • Preparation of technical accounting memos related to Restructuring Costs Associated with Exit or Disposal Activities (ASC 420)

Capital Market Transactions

We have extensive experience helping companies going public and with mergers and acquisitions process and provide assistance with the following areas.

IPO and SPAC Services

We have helped various companies accessing the public capital markets with the traditional IPOs and SPAC transactions. Our services include assisting companies with the following:

  • Preparation and filing of registration statements, such as, Form S-1/S-4, including related amendments
  • Accounting gap assessment in preparation for an IPO/SPAC
  • Preparation of technical accounting memos to address accounting gaps
  • Perform procedures for Quarterization and interim financial information, such as, cut-offs procedures, search for unrecorded liabilities (“SURL”), balance sheet account reconciliation schedules for audit
  • Prepare bridge trial balances, including adjusting journal entries to record in the general ledger
  • Upgrade private company AICPA financial statements to public company PCAOB and SEC compliant financial statements
  • Preparation of annual and interim financial statements (F-pages and footnotes) and MD&A, including tie-out for audit support
  • Preparation of Article 11 Pro-forma Combined Financial Information
  • Preparation of EPS calculations, basic and dilutive
  • Other financial information to be included in Form S-1/S-4, including Selected Unaudited Pro Forma Condensed Combined Financial Information, Comparative Per Share Information, and other data
  • Responses to SEC comment letters
  • Post IPO/De-SPAC accounting and reporting support, including ongoing SEC filings
  • Drafting technical accounting memos on reverse merger, accounting acquirer, cheap stock, segment reporting, going concern, etc.
M&A and Business Combinations

We have in-depth experience in the M&A transactions and provide assistance with the following:

  • Accounting due diligence
    • Perform agreed upon procedures
    • Identify accounting policy differences between Target and the Acquirer
    • Review certain accounting positions, as needed
  • Review of M&A agreements
  • Purchase price accounting, including preparation of opening balance sheet and technical accounting memo
    • Preparation of opening balance sheet
    • Documentation of accounting conclusions in a technical memorandum, including contingent consideration and earnouts
    • Analyzing whether a transaction is a business combination vs. an asset acquisition
    • Review with Company’s auditors about accounting position
  • Integration of newly acquired entity and post-integration efforts
  • Preparation of pro-forma financial information, as applicable
  • Preparation of carve-out financial statements, as applicable
  • Preparation of Form S-1/S-3 and 8-K

Private Company Support

Private companies sometimes lack qualified resources to help close their accounting books at year-end. We provide the following services:

Private Company Audit Readiness and Interim Management Support
  • Analyzing various technical accounting matters, such as, stock-based compensation, convertible debt and preferred stock financing, etc. and drafting technical accounting memos and preparing adjusting journal entries to record in the general ledger
  • Provide interim accounting manager resources to help close books
  • Provide interim management support at the Corporate Controller level
  • Prepare financial statements and related footnotes, including accounting disclosures checklist
  • Help coordinate between the external auditor and the Company’s management to facilitate the audit process
  • Preparation of functional classification of expenses in the income statement, such as, Research and Development (R&D), Selling and Marketing (S&M) and General and Administrative (G&A)