Industry Spotlight Series
Industry Spotlight Series provides industry perspectives on recent developments in accounting and financial reporting.
A roadmap to accounting and financial reporting
Parent companies often have questions about how to prepare “carve-out financial statements” (separate financial statements derived from the financial statements of a larger parent company).
Certain SEC staff guidance addresses some elements of carve-out financial statements (e.g., when the statements will be included in an SEC filing), and parent companies often analogize to the SEC staff’s guidance on preparing financial statements for nonpublic carve-out entities. However, there is no single set of comprehensive guidance on preparing financial statements for carve-out entities.
Factors to consider
To help companies streamline the preparation of these financial statements, this publication summarizes:
- Basic principles of carve-out transactions
- Management considerations
- Accounting considerations related to a carve-out entity’s balance sheet
- Accounting considerations related to a carve-out entity’s statement of comprehensive income
- Other accounting and financial reporting Items
- SEC reporting topics