New considerations for preparing carve-out tax provisions

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Tax reform changes have impacted carve-outs

Preparing carve-out financial statements can be complicated and often highly subjective. Accounting rules and guidance governing the composition of the carve-out entity and the resulting application of US generally accepted accounting principles is limited. The passage of the 2017 Act has created additional complexity and judgments in preparing the carve-out tax provision.

Tax reform will impact your carve-out financials

Generally, carve-outs will require data and calculations at a more granular level, as historical tax processes and systems were designed when the carve-out entity was part of a larger group. 

Companies may need to prepare separate tax provision calculations for each 
material jurisdiction in which the carve-out operations take place.

Contact us

Michael Niland

US Divestitures Services Leader, PwC US

Rick Levin

US Tax Accounting Market Leader, PwC US

Trevor Wade

US Tax Partner, PwC US

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