Group reorganisations
Sector: Construction
Company profile: Private UK group with revenue of £300m
Background
Our client wished to undertake a demerger of certain entities within the group ahead of expanding a distinct division of the business.
How we assisted our client
We led a joint project team comprising Forvis Mazars Accounting and Tax Advisory, along with the client team and the client’s legal advisor.
We tailored a joint accounting and tax step plan, based on our client’s target structure. This comprised a numerical step plan, accompanied by technical accounting and tax papers, supporting the various elements of the step-plan. Additionally, we assisted with the preparation of the post-transaction consolidation for the two newly formed sub-groups, and the required disclosures for the financial statements.
The strong project lead provided by Forvis Mazars allowed the objectives of the group reorganisation to be achieved according to the required timetable. This was of critical commercial importance to the client, since it facilitated the submission of a bid by the newly de-merged group for a strategically important contract.
Business combinations
Sector: Energy infrastructure with assets in Africa
Company profile: Private company with turnover of $500m
Background
The company acquired a Mozambique solar power plant and the related operating service agreement and needed to determine the appropriate accounting treatment in the consolidated financial statements.
How we assisted our client
It was important to determine whether the acquisition of the power plant and service agreement were business combinations within the scope of IFRS 3, to be able to conclude whether acquisition accounting should be applied. We performed an analysis of the operations which were acquired to determine whether the operations constituted a business, and in fact, whether there was more than one business acquired.
This was an important assessment as it would ultimately lead to the requirement for a purchase price allocation exercise.
We subsequently worked closely with the Forvis Mazars valuations team to determine the accounting for the acquisition and the impact in the consolidated financial statements.
The work performed by Forvis Mazars provided certainty over the robustness of the accounting for the acquisition, the accounting policy decisions and the disclosures in the financial statements.
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Capital markets accounting advisory
Financial reporting is more challenging for public companies than for private ones. When considering whether to raise funding on a public market, it is important to consider what is needed to “go public” together with the requirements of “being public”.
Finance director support
While the demands on the finance function may ebb and flow, finance teams are often under considerable pressure at key points such as the year end, or when implementing transformational change.
Accounting standards implementation
Accounting standards are the backbone for all financial information. Whether you are reporting under IFRS, UK GAAP or US GAAP, the application of accounting standards is of paramount importance, as accurate and consistent information allows stakeholders to make sound economic decisions.
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