Guided public energy company through complex purchase accounting

Guided public energy company through complex purchase accounting

A public European energy group of companies came to Mhalou and her team for guidance and assistance with the review and documentation of the appropriate accounting and reporting of a complex business combination transaction under both International Financial Reporting Standards (IFRS) and U.S. generally accepted accounting principles (GAAP). The parent and certain subsidiaries of the public European Company entered into various complex agreements in connection with the acquisition of a group of energy companies with a public U.S. energy parent company.

The structure of the deal led to the expansion of the team’s role and services to include valuation and tax as the team helped the Company to identify the acquirer, determine the appropriate accounting for the reversed acquisition, complete the purchase price allocation exercise, establish opening balance sheet on consolidated and entity levels, and conduct impairment analysis for goodwill, intangibles, and long-lived assets.

In addition to the accounting advisory for the business combination, the team assisted the Company with other audit supports, financial statement preparations, and annual financial statement filing in their respective stock exchanges in the U.S. and overseas.

The successful completion of the project despite the very tight deadlines led to more opportunities to Mhalou’s team, including the conducting of regular CPE trainings (both IFRS and U.S. GAAP); assistance in implementation of new standards such as revenue recognition, leases; other technical accounting consultations; and finance integration projects.

Note: This work was performed prior to joining Stout.