Seven principles to consider when preparing a tax provision for subsidiary or carve-out financial statements

Download Seven principles to consider when preparing a tax provision for subsidiary or carve-out financial statements.

Many divestiture transactions involve buyers who, for financing or SEC reporting purposes, will require the seller to provide audited carve-out financial statements. Depending on the complexity of the carve-out, the preparation and auditing of these statements can be extremely complicated and time intensive. There are unique tax considerations for carve-out financial statements which add additional complexity to the financial reporting process. While not all-inclusive, this paper explains several key principles, which, if kept in mind, will enable preparers to manage a carve-out tax provision process more smoothly.

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