Filing for bankruptcy can place significant demand on accounting and reporting teams to generate information in short order while applying a high degree of precision to meet attorney and creditor needs. These demands ignore the teams existing workload making for a difficult time for all parties concerned.
On Day 1, filing requirements are immediately triggered to a host of recipients including, but not limited to the bankruptcy court, the Securities Exchange Commission and private shareholders and creditors. Many of these filings involve the application of a different basis of accounting and unique data presentations which substantially increases the volume of activities in the Finance and Accounting functions of the organization.
From inception and well after the bankruptcy process, accounting and valuation challenges result due to the application of the bankruptcy accounting standard. Examples of such challenges include presenting balance sheet liabilities as items that are fully secured and those that may be subject to compromise, and adjusted to estimated allowed claim amount. Determining the appropriate presentation of expenses related to the bankruptcy and considering the various valuation matters pre and post emergence is another challenge to navigate.
To meet these challenges, our accounting advisory team works seamlessly with other principals involved in the filings to plan and execute all reporting requirements. Our PwC professionals are disciplined in the practice of bankruptcy accounting, SEC reporting, tax structuring, valuation and the Chapter 11 filing process. PwC's multi-disciplined offering allows us to provide a unique solution that is both relevant and effective to meet the challenges throughout the bankruptcy process.