Offering advice and assistance on US GAAP and SEC regulatory matters:
Pre-transaction GAAP Analysis
Entering into a complex transaction without an understanding of the accounting treatment could be disastrous for public companies. From embedded derivatives to beneficial conversion features and deemed distributions to contingent consideration, complex transactions could result in unexpected accounting and disclosure requirements that could burden a company for years to come. We have extensive experience in reviewing proposed transactions for potential accounting and disclosure implications and we can assist in structuring transactions so that the GAAP and disclosures align with the intent of each transaction.
Technical Accounting Research and Memos
Keeping track of the myriad of GAAP and SEC requirements and seemingly endless changes requires diligence and resources. We can fulfill or supplement the duties of the accounting policy group for companies in flux or that are too small for a full-time staff. Whether it is a one-time engagement to determine the proper GAAP treatment or SEC disclosures for a transaction, or you need a more complete resource for review of 10-Ks and 10-Qs for potential problem areas, or CPE training for your staff, we can fill the need for complex and new accounting standards.
Our diversified KU teams can focus on:
Pre-Filing Reviews of SEC Periodic Reports
All public companies face rapidly changing and complex accounting in satisfying SEC reporting requirements. Many companies, especially smaller public companies, can benefit in having an independent advisor and reviewer on their team to comprehensively deal with financial reporting and SEC compliance matters. Sections 302 and 404 of the Sarbanes Oxley Act (SOX), and related SEC rules, require all public companies to commit appropriate resources to decipher and apply new accounting rules resulting in the preparation of complete, accurate, and timely SEC filings based on the foundation of strong controls.
We partner with public companies to accomplish SEC compliance objectives by providing;
As an added measure, we can also serve on compliance and disclosure committees for our clients. We do not perform audit or other attest services so we are never in conflict with SEC independence rules. Kral Ussery offers a level of internal review and support to complement your controllership and compliance functions.
Some SEC registrants cannot justify full time quality review staff that are sufficiently up to date with current GAAP and SEC reporting rules. We perform this function in a cost-effective manner resulting in enhanced internal controls over financial and regulatory reporting. Our teams can also serve as an ongoing resource to address U.S. GAAP and SEC compliance issues raised by regulators and the external auditor.
An initial public offering (IPO) is one of the most challenging and rewarding transactions. A misstep in strategy, SEC reporting, accounting, governance, risk management, culture, or controls can be fatal. However, an effective transaction yields greater liquidity to shareholders and an increase company market value thus opening more expansion doors. Preparation and building a strong IPO team is essential. Consider KU on your IPO team.
There are several pros and cons in making the decision to take a company public. Once made, there are also considerations regarding which route to take. Options include;
Trusted advisors can help navigate the process, confront key decision points and hurdles, and pave the way to a successful transaction. A large part of the process is education and readiness on many fronts, including:
The KU Team can educate, help prepare and even manage these fronts. Don't let a misstep derail your plans - contact us now.
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