At a glance
The broadening of private company securities sales has helped drive the development of two new offerings from the NYSE and NASDAQ OMX.
Observations from the front lines provides PwC's insight on current economic issues, our perspective regarding the business impacts, and actions we have seen companies taking to effectively address those issues.
Both the NYSE’s ACE Portal and NASDAQ’s OMX’s Private Market platforms are designed to provide private companies with either a stepping-stone to going public, or in many cases where companies wish to remain private, companies can improve their level of capital markets readiness with respect to a broader set of potential investors to access capital.
The acquisition of a foreign business can introduce complex financial reporting challenges when accounting for income taxes.
Unexpected expenditures and accounting adjustments – like those arising from environmental obligations – can dramatically impact capital budgeting and future earnings. Companies have found that practices vary widely across sectors and both engineering and accounting expertise are critical in assessing environmental obligations.
Recently the FASB issued an Accounting Standards Update to permit private companies to amortize goodwill acquired in a business combination, and to apply a simplified goodwill impairment model. This change is intended to help reduce reporting complexity for private companies; however, private companies should carefully consider this alternative, especially for those considering an initial public offering.