Ga naar de inhoud
CM&P partners have extensive experience in managing the process of preparing budgets, periodic figures and the annual report. This is actually work that should be done by the company’s controller. It may be that this person has not yet been found. In that case, we are certainly prepared to assist the company on a project or interim basis, including coordinating the supply of data from the company, liaising with external consultants and holding regular progress meetings with management and the auditor. We have prepared financial statements in accordance with IFRS, US GAAP and RJ standards.
Incumbent financial managers are often unfamiliar with preparing an acquisition balance sheet. We explain this in detail and record it down to journal entry level. The aim is to minimise differences between local accounting and tax policies and group policies. Local financial managers have to record figures on these three bases separately. The differences between the bases often arise during acquisitions. A major cause is the purchase price allocation, a valuation of all the individual assets at the date of acquisition, which is recorded as a book value in the group’s books, but usually not in the tax books of the individual companies. A valuation company carrying out this allocation for accounting purposes has access to international databases from which it can derive the market prices of the assets on the date of acquisition. CM&P has been involved in the selection of these companies on several occasions.
We provide information from the business to the valuation firm for the purpose of purchase price allocation. At the same time, we assist the appraisers in making decisions to arrive at an appropriate valuation, such as the choice of method and the preparation of the valuation.
Part of valuing a business is making appropriate provisions at the acquisition date. This depends in part on the company from which you are acquiring a business and what you find when you prepare the acquisition balance sheet.
The final processing of an acquisition partly depends on the final settlement. (link naar webpagina met settlement invoegen) Of course, the same process is repeated for add-on acquisitions. For add-on companies, the accounting process is almost identical to the preparation of a year-end audit.
If there is a functioning consolidation system, provisional figures (before the final price settlement) can be entered directly. If the new company is a spin-off with several branches, financial reporting will usually have to be done manually at first (information management).
