Helping you navigate complex standards.

For many companies, the U.S. Generally Accepted Accounting Principles (GAAP) are an essential component of their financial reporting processes, both internally and externally. But the complex standards can be difficult to navigate – and changes in the reporting standards can have a big impact, both on your financial statements as well as your overall business.

That’s where we come in. At TMO Consulting, our U.S. GAAP Consulting professionals provide a full range of accounting services, including:

• Business combination and asset acquisitions
• SEC-related rules and regulations
• All aspects of ASC 805
• Share-Based Compensation
• Navigating grant-date determinations, terminations, and modifications
• Complex financial instruments, including derivatives
• Convertible debt and other redeemable instruments
• Revenue recognition policies and disclosures
• Lease accounting policies and disclosures

Meeting new standards and regulations, head-on.
Both U.S. GAAP and IFRS reporting standards continue to evolve every day. And while current expected credit losses, lease accounting, and revenue recognition changes may make the headlines, numerous other standards have been updated as well, each impacting balance sheets and financial reporting for current and prior reporting periods.

TMO Consulting offers comprehensive guidance on all aspects of new standards implementation. We help clients understand effects on reporting, disclosure requirements, whether or not changes to internal controls are needed, how to communicate with relevant parties, and how much time it will take to manage it all. Our professionals are deeply experienced in the nuances of regulatory language – in many cases participating in the writing itself as part of AICPA panels.

Guidance through every last detail.

As the business environment continues to evolve, financial reporting remains a time-consuming, but necessary responsibility. Accuracy matters, especially for companies who may go public, who may be part of a merger of acquisition, or who are considering debt issuance or restructuring at any point in the future.
TMO Consulting assists both public and privately held companies navigate the many complexities of financial reporting. We have extensive experience in SEC reporting requirements, including periodic reporting, pro forma financial statements, and transactional reporting. Our team is able to address technical issues of all kinds, and able to offer comprehensive support on key issues without independence concerns. We assist clients in the following areas:

• Financial statement preparation
• Disclosure compliance
• ’33 and ’34 Act financial statement and filing requirements
• Restatements
• Preparation of pro forma financial information

Experience when it matters most.

IPO Services
Going public is a defining moment in the growth of a company, and often the signature achievement in the careers of those who made it possible. The IPO process, however, can be daunting, with countless technical accounting requirements and procedural details. Yes, experience matters.

As one of the world’s largest and most respected accounting and advisory organizations, TMO Consulting has guided numerous companies through all stages of the IPO process. We work constantly and collaboratively with finance teams, external auditors, board directors, legal counsel, and investment banking professionals.

• Comprehensive audit preparation
• Evaluation of governance and operational structures
• Assist drafting of registration statements
• Conversion from private-company to public-ready financials
• Preparation of stub period financial statements
• Upgrades to existing accounting policies
• Assistance with comment letter and preclearance letter
• Interpretation of SEC regulations
• Drafting periodic filings and transactional filings

Private placements and debt offerings
Beyond IPOs, there are numerous ways for companies to raise needed capital, each with a unique set of advantages, timing, and cost considerations. TMO Consulting helps both public and private companies identify, prepare for, and execute the raising of capital through alternative means, like private placements (144A) and debt offerings.
Throughout all stages of the process our team can assist with:

• Application of offering rules for both registered and unregistered offerings
• Assistance with drafting offering documents and preparing required financial statements
• Evaluation of operational issues and readiness
• Buy-side or sell-side due diligence
• Preparation of Quality of Earnings
• Tax implications
• Preparation of a data room for prospective buyers
• Document accounting for the offering

Planning and effecting an organization’s emergence from bankruptcy can be one of the most taxing and complex projects from an accounting and logistical standpoint. Management must navigate complex legal restructuring and accounting requirements during the equivalent of an additional year-end close process while establishing the successor opening balance sheet and new relevant accounting policies. TMO Consulting’s Accounting & Reporting Advisory Services group will help keep your organization on track and can help reduce the overall burden of the technical accounting planning, adjustments, and disclosure requirements so management can focus on running the reorganized business.

Pre-Emergence Planning

• Review of balance sheet and operating/legal structure to assess the level of effort required to account for the entity’s emergence
• Assist management with implementation timeline and assess system and process requirements for equivalent of additional year-end close process
• Review plan document and work with management to manage the allocation and reconciliation of liabilities subject to compromise, exit financing structure, and related funds flow
• Coordinate assistance with the entity in the evaluation of the impact to previous net operating losses, creditor recoveries & forgiveness of debt, and other income tax aspects of the reorganization
• Work with the entity’s external auditors in the planning process

Emergence Adjustments

• Based on review of the Plan document, assist management with the preparation of journal entries to reflect the impact of fresh start accounting in compliance with the Plan
• Maintain the entity’s four-column balance sheet to bridge the predecessor financials through fresh start and valuation adjustments to the ultimate successor opening balance sheet
• Coordinate assistance with the determination of gains and any distributions resulting from the plan of reorganization

Post-Emergence Accounting

• Review successor opening balance sheet with management and assist with the development of new accounting policies and schedules as needed for any of the following areas:
  • Amortization of new intangible assets/useful life determination
  • Residual goodwill assessment and reporting
  • Accounting for the revaluation of off-market operating leases
• Assistance with analysis and preparation of any new technical memorandums and assessments, as needed

Financial Statement Disclosures and Fresh-Start Reporting

• Assistance with the adoption of other bankruptcy-related requirements of FASB Accounting Codification 852, Reorganizations
• Assistance with drafting the narrative description of the effects of the plan of reorganization and impact of adoptions fresh start accounting in the footnotes, including how reorganization value was determined, quantification of various balance sheet adjustments recorded as a result of the emergence, and how pre-petition liabilities were settled
• Assistance with new internal reporting, and comparison of post-emergence financial statements to historical operations given the effect of run-off adjustments (e.g. depreciation of revalued long-lived assets, etc.)

A smoother path to IFRS Conversion.

For many businesses, transitioning to IFRS can seem daunting – the standards are unfamiliar, and execution can be consuming.

TMO Consulting’s IFRS Consulting services are carefully tailored to individual clients in order to reflect the specific operational, regulatory, and financial risks they face. Our dedicated service teams help you navigate the process from start to finish, ensuring efficient change and minimum disruption to your business. Our senior-level professionals remain accessible throughout the engagement and are backed by the global resources one of the world’s largest accounting and consulting networks.

Our IFRS conversion process is broken down into four phases:
Phase 1: Preliminary Impact Assessment
Phase 2: Detailed Assessment
Phase 3: Implementation
Phase 4: Post Implementation Review

We begin working with your financial and operational professionals immediately in order to gather information and design the most efficient procedures possible. During execution our professionals will communicate regularly throughout the project in order to avoid unforeseen events and to enable smooth and timely completion.

We know your business.

TMO Consulting offers industry-specific guidance on all accounting and reporting matters. Our dedicated industry practice groups have decades of experience working with clients of all sizes and can provide big-picture perspective or hands-on assistance on whatever issue your organization is facing. We are well-versed in industry trends, able to help you understand not only the best practices of your industry today, but the issues you likely will face in the years ahead. Our specialized industry groups include:

• Healthcare
• Life Sciences and biotech
• Technology
• Manufacturing & Distribution
• Financial Services
• Asset Management
• Gaming, Hospitality & Leisure
• Government Contracting
• Industry 4.0
• Insurance
• Natural Resources
• Nonprofit & Education
• Private Equity
• Public Sector
• Real Estate & Construction
• Restaurants
• Retail & Consumer Products