Chapter 1 — Key Concepts Related to Carve-Out Financial Statements 1.1. Introduction 1.2 Identifying the Form and Content of the Carve-Out Financial Statements and the Operations of the Carve-Out Entity 1.2.1 Form and Content of the Carve-Out Financial Statements 1.2.2 Basis of Presentation: Identifying the Carve-Out Entity’s Assets, Liabilities, and Operations 1.2.3 Spin-Offs and Reverse Spin-Offs 1.2.4 Common-Control Transactions 1.3 Considerations for Management 1.3.1 Identifying the Carve-Out Entity and the Carve-Out Financial Statements 1.3.2 Assembling the Right Team 1.3.3 Materiality and Evaluating Misstatements 1.3.4 Internal Controls 1.3.5 Supporting Documentation 1.3.6 Significant Judgments and Estimates 1.3.7 Working With Auditors