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?
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?