Content on this page pertains to the complex accounting aspects of bankruptcy reporting. Please visit PwC's Restructuring and recovery page for other key elements to consider.
Filing for bankruptcy can be a difficult time for all parties concerned. On day one, immediate filing requirements are triggered for a host of recipients including, but not limited to, the bankruptcy courts and shareholders. Many of these filings involve the application of a different basis of accounting which substantially increases the volume of activities in the finance and accounting functions of the organization.
Both before and after the bankruptcy process, accounting and valuation challenges may result due to the application of the bankruptcy standard. An example of a specific challenge includes presenting balance sheet liabilities between items that are fully secured and those that may be subject to compromise. Additionally, companies must determine the appropriate presentation of expenses related to the bankruptcy and consider the various valuation matters pre- and post-emergence.
Impacts to companies:
What companies should do: