Debt – Financial Reporting Advisory, LLC

GAAP Part 4.17 Debt Exception

Debt acquired as part of the transaction

Typically when combining businesses, the acquirer takes on any and all debt of the acquiree. In cases where the liabilities of the acquiree are settled near the acquisition date, however, the cash used to settle the liability could be considered part of the consideration transferred to the acquiree.

Was any of the acquiree's debt extinguished by the acquirer during on or in close proximity to the acquisition date?

Yes

We need to add that amount to consideration transferred, as it qualifies as an expense used to acquire the business from the acquirer's perspective. Please mark which accounts were extinguished, as well as how much was extinguished.

Exception does not apply.

If you are human, leave this field blank.