Wirtschaftsprüfung
Auditing
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Combined/Carve-Out Financial Statements

Where a company is selling one or more business areas, the business area to be sold often does not have an independent legal structure, or does not have this consistently in the past. Instead, it is either fully or partially integrated into the group structure. Depending on the financing format, and other contract requirements, it may be necessary to prepare, or even audit, independent financial statements for the business area to be sold, even where there is no or not consistently a separate legal structure.

WHICH COMPLEXITY DRIVERS APPLY?

  • Retrospective and time-consuming investigation of data
  • No guidance to compile combined and/or carve-out financial statements; instead, the various regulators set the requirements
  • Assets and liabilities must be clearly attributable
  • Income and expenses may need to be allocated using specific allocation keys

WHAT ARE THE COMPONENTS OF COMBINED/CARVEOUT FINANCIAL STATEMENTS?

If full IFRS-compliant financial statements are required, a statement of financial position, income statement, cash fow statement, statement of changes in equity and a full set of notes must be prepared, together with comparative figures. In contrast, if it is contractually agreed that combined and/or carve-out financial statements have to be prepared, no regulatory requirements apply, and the contracting parties are free to determine the components and format.

WHAT SUPPORT DOES AUREN OFFER?

  • Many years of extensive expertise in compiling and auditing combined financial statements based on our advisors’ project experience with the Big-4 companies
  • Committed, effective teams
  • Short and fast communication and decision-making channels between our advisors and you
  • Pragmatic, consistently solution-focused approach
  • Central contact, including for other workstreams, such as taxes, due diligence or valuation

Further information